She says: "This acquisition could not only give ZTO Express a leg up on worldwide deliveries it can also provide Alibaba and Cainiao a means of keeping packages within its network a little longer and ensure global capacity, perhaps at a more agreeable rate as negotiated by the forwarder, China Oriental Express".
Alibaba is preparing for the next wave of e-commerce by investing more than 100 billion yuan to build the technical backbone for a smart logistics network. Through technology innovation and open collaboration, Cainiao has now reduced cross-border shipping time from an average of 70 days to less than 10 days for some countries. Cainiao said that by 2020, it would deploy new energy vehicles to 100 cities in China and apply AI algorithms to drive smart routing in 40,000 villages and shorten the average length of delivery journeys by 30% in rural areas.
"This network is not only national, but global. We will continue to work closely with industry leaders, including ZTO, to enhance our logistics infrastructure and broaden our service offerings to meet the growing demand from New Retail".
The stake increased from 47% to 51% in Cainiao, which is the logistics affiliate of Alibaba.
Established in 2014, RoboSense is world's leading autonomous driving LiDAR environment perception system provider, the first company in China to bring autonomous driving LiDAR into mass production. This investment will enable Cainiao and ZTO to supercharge joint innovation and development to accelerate digitalisation of the industry. "As the industry will increasingly become tech-driven, Cainiao aims to be the "brain" of the logistics industry". Parcels are processed on fully automated assembly lines, equipped with robotic arms and more than 500 automatic guided vehicles man the floor, picking packages off carts and delivering them by the most efficient route to warehouse clerks for sorting and distribution.
Alibaba Group says it needs to prepare for a future where a billion packages are processed a day, which means costs must go down and efficiencies must go up.