Alibaba, along with its logistics affiliate, Cainiao Network, has agreed to invest US$1.38bn in ZTO, a leading express delivery company in China.
Nationwide logistics network
ZTO is one of China’s largest express delivery businesses, incorporating pickup and last-mile solutions, as well as value-added logistics services. Its delivery network covers over 96% of China’s cities and counties and already works in partnership with Alibaba, as well as rival online giant, JD.com.
Investing to integrate online and offline
Under the new US$1.38bn deal, Alibaba and Cainiao have agreed to acquire 10% of the business. In the partnership, Cainiao and ZTO will work together to promote the seamless integration between online and offline commerce. It will also further strengthen the two businesses’ focus on improving delivery capabilities, warehouse management, cross-border logistics and technology-driven smart solutions.
Daniel Zhang, CEO of Alibaba Group and Chairman of Cainiao Network, commented: "ZTO has been an important partner to Alibaba Group and Cainiao Network in the development of the new digital economy. The continuing expansion of New Retail is catalysing new opportunities and demands in logistics. This strategic investment will strengthen synergies across our mutual businesses to create new value and improved experience for merchants and consumers."