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Alibaba to buy additional stake in Cainiao Smart Logistics Network for $807m

LBR Staff Writer Published 26 September 2017

Alibaba has agreed to acquire an additional stake in Cainiao Smart Logistics Network for around RMB5.3bn ($807m).

The stake will be increased from 47% to 51% in Cainiao, which is the logistics affiliate of Alibaba.

Alibaba is also planning to invest around RMB100bn ($15.2bn)  in the next five years to further enhance its global logistics network to fulfill orders in China within round the clock and within 72 hours across the globe.

According to the company, the investments will help to offer better logistics services for consumers and merchants across the Alibaba ecosystem.

The additional investment will be used to increase R&D in logistics data technology, in addition to developing smart warehousing, smart delivery and global logistics infrastructure.

Subject to satisfaction of customary closing conditions, the deal is expected to complete by the end of this month.

Cainiao runs a logistics data platform, which will help logistics partners to fulfill transactions between merchants and consumers on a larger basis.

It uses data insights and technology to enhance efficiency across the logistics value chain.

Alibaba Group CEO Daniel Zhang said: 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.”

Image: Alibaba Group’s corporate campus in Xixi, Hangzhou, China. Photo: courtesy of Alibaba Group Holding Limited.