Friday, February 01, 2013

Alibaba to invest in China’s logistics infrastructure


News this week: According to Reuters, the Alibaba Group, together with partners, plans to invest US$16 billion in the first phase of its plan to build a sophisticated logistics network in China.

The initiative will be led by Alibaba Group founder, Jack Ma. Over the next decade the group aims to build a logistics network which could allow the delivery of products within China in less than 24 hours. The network will supposedly be able to support online sales of RMB 10 trillion. Other investors include private equity firms, express companies and a bank.

“This is consistent with what we've said in the past that logistics is a key industry bottleneck for e-commerce growth in China and that everyone involved in this sector needs to work together to drive rapid development,” an Alibaba spokeswoman said in an email to Reuters.

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