Alibaba Looks To Increase Stake In Logistics Company Cainiao
On November 8, Alibaba Group announced an additional investment of roughly $3.3 billion to increase its equity stake in the logistics company Cainiao they launched in 2013. Alibaba currently owns a controlling 51% stake in the company but is aiming to acquire additional equity to bring their ownership share up to 63%.
“Logistics is a key pillar of the Alibaba Business Operating System. It allows us to offer the best service to customers and to effectively advance our New Retail strategy. Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world. We are committed to supporting its ongoing development, to realizing greater synergies throughout the entire Alibaba Economy and accelerating digitization of the logistics industry,” said Daniel Zhang, Executive Chairman and CEO of Alibaba Group.
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Established in 2013, Cainiao is a world-leading technology-driven logistics and infrastructure facilitator. The company takes an innovative and technologically-advanced approach to logistics, introducing IoT and smart supply chain solutions in the sector, along with algorithms and technologies to improve industry efficiency. Cainiao is also responsible for developing robust international and cross-border fulfillment solutions facilitating Alibaba’s international e-commerce businesses, including Tmall Global, AliExpress and Lazada.