China’s largest e-commerce firm Alibaba Group plans to invest heavily in logistics with the aim of building 32 distribution centers in China within the next two years.
The plan, in its initial stage, has no detailed investment amount but does not exclude the possibility of setting up a separate company, Reuters reported.
The company wants to expand its reach to 52 cities in two years from 20 cities currently. It runs its current network through external partners and distribution centers.
Jack Ma, the founder of the company in which Yahoo Inc. currently owns a 40% stake, believes that China’s logistics market is fragmented and does not offer optimal customer service.
The Alibaba Group is the parent company of China’s top B2C firm Alibaba.com, China’s top e-commerce firm with a consumer focus, Taobao and the country’s leading e-payment, service Alipay.
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