Chinese e-commerce titan Alibaba Group Holding Ltd and its logistics
unit Cainiao Network Technology Co Ltd plan to spend more than 100
billion yuan ($15.6 billion) to build out a national smart logistics
network, underscoring its aggressive logistics expansion plans at home
Jack Ma, founder and chairman of Alibaba Group, said on Thursday at
the Global Smart Logistics Summit in Hangzhou, Zhejiang province, that
Cainiao will ramp up the efforts to build the smart logistics network,
producing profit margins for the manufacturing sector via intelligence
The announcement came right after Cainiao last week unveiled a smart
logistics platform that uses 1 million new energy vehicles for express
delivery, marking the latest move to boost its logistics capability.
According to Ma, the future national smart logistics network consists
of two parts: the domestic network and the global network. The domestic
one will be able to achieve 24-hour delivery nationwide, cutting
China's logistics costs to account for less than 5 percent of the
country's GDP. Alongside the countries and regions involved in the Belt
and Road Initiative, the global one will support 72-hour delivery across
"The network will serve whole logistics firms," Ma said. "Cainiao
will work with various logistics companies to cope with problems
relevant to the state, industrial sector and society."
According to Jack Ma, China's courier sector is set to handle 1
billion parcels per day in the next five to eight years, while few firms
have developed the ability needed to deal with that huge amount.
"That's why we are calling on all express delivery firms to transform
into data companies and embrace new technologies," he said.
Unlike its domestic archrival JD, Alibaba does not operate a
self-owned logistics infrastructure but uses Cainiao to build a
logistics network of delivery firms.
Established in 2013, Cainiao serves as a technology-driven socialized
logistics collaboration platform. It connects 3 million couriers and
warehouses covering 30 million square meters, helping reduce the
shipping and delivery time from more than four days to two and a half