Alibaba to invest $15 billion into logistics network Cainiao

Almaty. September 27. Silkroadnews – Alibaba will invest $15 billion in the Cainiao logistics network, South China Morning Post reported.
“Alibaba Group, the largest e-commerce platform in China, is planning to invest 100 billion yuan (US$15 billion) to strengthen its global logistics network over the next five years after becoming the controlling stakeholder in its affiliate logistics arm Cainiao Network,” the report said.
It is noted that Alibaba will make an additional investment of 5.3 billion yuan to increase its share in Cainiao from 47% to 51%. Upon completion of the transaction Alibaba will become the controlling shareholder of Cainiao, having received one more, the fourth of seven, a place on the board of directors.
Reportedly, Alibaba is going to invest 100 billion yuan over five years to ensure the delivery of goods in China within 24 hours, and all around the world within 72 hours. According to the company’s officials, its further investment in Cainiao will provide consumers and sellers with more efficient logistics at lower costs in China’s logistics sector.
On the eve of the coming Single’s Day shopping boom on November 11 (a trading day on the Alibaba Internet portal), Cainiao has offered 1.5 billion yuan to its Chinese traders and logistics partners to build additional warehouses and improve delivery efficiency. “This year’s event is expected to generate a one billion deliveries between November 11 and 16,” the publication reads.