Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Markets & Regulations
Supply Chain Management
Return to: RBR Home | Markets & Regulations | Supply Chain Management

Alibaba establishes Cainiao Network to imrove online delivery service in China

EBR Staff Writer Published 29 May 2013

Chinese e-Commerce giant Alibaba Group, in collaboration with industry partners, has set up Cainiao Network Technology, a $16.3bn logistics network to provide Internet infrastructure for startup companies and small vendors, and improve domestic delivery service.

Other shareholders in the logistics network include Fosun Group, China Yintai, SF Express and Yunda Express Service. China Life Insurance and China CITIC Bank will provide funds to the project.

Cainiao Network Technology aims to provide services to manufacturers, online sellers, delivery services and third-party service companies.

The company is expected to support transactions worth CNY10 trillion per year within the next 10 years.

Through this new establishment, the e-Commerce major plans to streamline warehouses across the country and build a data system to track delivery and transaction information. The plan is expected to be completed in five to eight years.

Alibaba chairman Jack Ma remarked that the launch of the new logistic firm is part of company's long-term plan to simplify logistic networks for the fast-growing e-Commerce industry.

"We'll dedicate at least 10 years to developing the new company and hope to reduce the logistics cost for privately owned companies and small vendors," noted Ma.