Alibaba buys controlling stake in logistics platform for $807m

Alibaba is ploughing an additional $807m into Cainiao, taking its holding in the logistics platform from 47% to 51%. It also pledged to invest Rmb100bn ($15.2bn) over the next five years. By moving to a controlling stake, the Chinese internet giant will consolidate the results of the loss-making Cainiao. It will also entrench its position among fellow investors including Alibaba-owned retailer Intime and a clutch of courier companies, the Financial Times reports. Alibaba said the deal would allow it to improve the logistics service. Some 55m parcels a day are delivered over the Cainiao data network. It comes amid a shake up in the logistics sector, which is the backbone infrastructure for China’s booming ecommerce market. It is highly fragmented, with hundreds of courier firms – several of which also work for Cainiao, which is a platform matching up drivers with deliveries and streamlining labeling and other services.