E-Commerce Company to Build Logistics Center in Shenzhen
China’s largest e-commerce company Alibaba will lead a group of investors and will be planning to build a 100 billion yuan smart logistics system in Shenzhen that will connect the existing networks and achieve a 24 hour delivery system nationwide of goods ordered online.
The new system called Cainiao Network Technology Co. was unveiled in Shenzhen a few days ago. Cainiao is a popular online term that refers to a rookie that lack experience. The investors decided on this name since they are newcomers in the logistics industry and together they will grow and learn together with other start up firms. Experts say that the project will have a total investment of around 300 billion and will be linking hundreds of domestic cities.
Jack Ma Alibaba’s chairman said that the company plans to dedicate 10 years in developing the new company and hopes it will reduce logistics cost for small vendors and privately owned companies. Ma together with other companies in the e-commerce trade has seen that improving the logistics services is the key in growing the industry. The new service will become the platform for connecting existing logistics networks with the internet infrastructure. Data on packages and delivery information can now be accessed and managed properly.
Initial focus will be on cities that have logistics services that are less developed and online orders usually take a few days to arrive.