Friday, May 31, 2013

Alibaba joins consortium to invest in logistics

News this week: China’s largest e-commerce company, Alibaba Group, has announced it will be part of a consortium that will invest up to US$16.3 billion over the next five to eight years to develop the “China Smart Logistics Network” – a plan to build a logistics network capable of delivering goods across the country.

The consortium has established a new company, Cainiao Network Technology Company Limited, to manage the system. Reported major shareholders include the Alibaba Group, Yintai Group, Fosun Group, S.F. Express Co., as well as four major Chinese courier companies: Shentong, Yuantong, Zhong Tong and Yunda. Jack Ma, Alibaba Group’s executive chairman, was named chairman of Cainiao, along with Yintai Group’s CEO, Shen Guojun, as CEO.

Alibaba has previously stated the group aims to build a logistics network over the next decade which could allow the delivery of products within China in less than 24 hours.

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