Alibaba Group Holding delivery affiliate will continue to prioritize growth over profits as it builds the logistics network at the heart of the Chinese e-commerce giant’s global expansion, Bloomberg reports. While Cainiao Smart Logistics Network needs funds to continue its investment in its distribution network, it only wants the backing of investors who endorse its model of incurring losses to build scale, Chief Executive Officer Judy Tong told partners at a conference in Hangzhou. Those losses have prompted a US investigation into why largest shareholder Alibaba doesn’t fully fold the smaller company into its own results. But she said both companies have provided data to prove they’ve played by the rules. Unlike Amazon.com and JD.com, Alibaba eschews owning its own transport network, preferring to farm out distribution.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved