- 19 October 2018
- Transport / Logistics Services
Chinese online retailer JD.com has announced plans to move into the parcel delivery business as a way of leveraging its network of warehouses and drivers and which could improve its flagging profits.
JD.com will be in direct competition with Alibaba owned Cainiao as well as logistics giants ZTO Logistics and YTO Express Group.
The firm, which is the second largest in China, has been looking to improve its profits after posting a Q2 net loss of US $334.4 million.
“This marks the next step in leveraging the nationwide logistics network that JD has built over the past decade,” Zhenhui Wang, CEO of JD Logistics, said in a statement posted on JD.com’s website.
“JD.com is known throughout China for the fastest and most reliable delivery, and we are confident that users will appreciate the convenience of this new service.”
According to JD.com this will allow individuals and businesses in Beijing, Shanghai and Guangzhou to reach locations across China with their goods and to be able to use JD.com’s app to schedule a pickup by delivery personnel.
It “aims to eventually make residential and business deliveries for shippers from anywhere to anywhere within mainland China in the future”, it added in the statement.