The Chinese technology group Alibaba recently made its fourth investment in the domestic delivery sector, purchasing 15% of STO Express for RMB 4.66 billion ($693 million), said the Financial Times.
The deal came shortly after Beijing marked logistics as a key sector for development, via incentives including a lower value-added tax bill, reduced employee pension costs and plans to axe road tolls across provincial borders in two years.
The comparatively low cost of using couriers in China has helped fuel the country’s rapidly growing ecommerce sector, with a reported 50.7 billion parcels being delivered nationwide last year.
Alibaba also owns 10% of ZTO, 11% of YTO and 27.9% of Best Logistics.
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