Alibaba going for logistics on a big scale
Jack Ma wants even more. The Chinese e-commerce giant Alibaba has taken control of the logistics unit, Cainiao, by investing RMB 5.3 billion. Alibaba's stake in Cainiao Smart Logistics Network will rise to the strategic 51% from 47% by the end of October.
This will give Alibaba another seat on Cainiao’s board, taking the total to four out of the seven seats. However, this is just a first step. Jack Ma's company says it has earmarked RMB 100 billion (USD 15 billion) for investments over the next five years to build out a global logistics network.
The announcement comes as Alibaba is internationally expanding its e-commerce and logistics network. Direct sales channels in Southeast Asia are part of this development.
Daniel Zhang, Alibaba Group CEO, was quoted as saying: "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." (cd)