Alibaba increases stake in smart logistics company Cainiao to the 51 percent

Alibaba Group Holding Limited (Alibaba) today announced that as a further step to implement its New Retail strategy, the company has agreed to make an investment of RMB5.3 Bn ($807 million) to increase its ownership of Cainiao Smart Logistics Network Limited (Cainiao), the logistics affiliate of Alibaba, from the current 47% to a majority stake of 51%.
The investment in Cainiao will provide Alibaba with one additional new seat on Cainiao’s board of directors, increasing its board representation to four out of seven seats.

Still subject to customary closing conditions, this transaction is expected to be completed in October 2017. Once completed the transaction, financial results of Cainiao will be consolidated under Alibaba Group and reported as part of the core commerce business segment.

Alibaba also announced plans to invest RMB100 Bn ($15.2 Bn) over the next five years to further strengthen its global logistics network. The objective is fulfilling orders in China within 24 hours and within 72 hours anywhere in the world.

The additional investment of RMB100 Bn (15.2 Bn) over the next five years will be used to increase R&D in logistics data technology, as well as for development of smart warehousing, smart delivery and global logistics infrastructure, all of which are core to building the global logistics network of the future.

Both investments are expected to enhance the overall logistics experience for consumers and merchants across the Alibaba ecosystem, as well as to enable greater efficiencies and lower costs in China’s logistics sector.

Our goal with this investment is to provide comprehensive, first-class experience for consumers globally,” said Daniel Zhang, CEO of Alibaba Group. “Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world. By enhancing the logistics capabilities within the Alibaba ecosystem and extending our investment in this sector, we are further enabling our New Retail strategy to bring online and offline retail into one seamless experience for shoppers. We will also continue to deepen our collaboration with various logistics partners to achieve this goal.”

Image over the headline.- Alibaba Cainiao delivery robot unveiled at Alibaba Hangzhou Campus on April 18th 2017. © Cainiao.

Related external links:

Alibaba Cainiao delivery robot unveiled at Alibaba Hangzhou Campus on April 18th 2017

Robots do the work inside Alibaba Cainiao Smart Logistics

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