Alibaba is spearheading a $1.38 billion bid for a 10% stake in delivery service ZTO Express, as the e-commerce giant seeks to expand its global logistics capabilities in the highly-competitive Chinese retail industry.
Other investors involved in the bid include Alibaba’s own logistics arm Cainiao, which according to Bloomberg, will work directly with ZTO on issues of delivery, shipping and technology.
Alibaba, which itself coined the term ‘New Retail’, is in an active rivalry with other Chinese e-commerce players such as JD.com to revolutionise the way firms offer shopping and delivery services. Not only is there demand to shorten delivery windows to a day or two, but also provide much more customised and technology-driven customer experiences.
“The growth of e-commerce and new retail in China demands more efficient express delivery and expanded logistics services,” said ZTO founder and CEO Meisong Lai. “This partnership will enable us to expand our selection of high quality service offerings both in China and internationally.”