Alibaba’s Logistics Arm Cainiao to Invest in Upgrading Delivery Services

Alibaba's Logistics Arm Cainiao to Invest in Upgrading Delivery ServicesAlibaba Group Holdings logistics offshoot Cainiao is planning to invest around 1 billion yuan to upgrade a type of service that is said to offer the country’s growing online shoppers faster and better deliveries. Cainiao Alliance a new e-commerce logistics organization that was created by Zhejiang Cainiao Supply Chan Management co. will be dedicated in offering high quality delivery services to its customers.

Couriers that sign up to the alliance are offered access to Cainiao full infrastructure resources and the supply chain and big data facilities, furthermore they will have access to the customer service team that is said to provide the higher level of service. According to Zhang Yong Alibaba’s chief executive officer and Cainiao chairman that logistics is the key to all new businesses and the economy. Cainiao plans to leverage its technology and big data in hopes to empower the courier partners in providing reliable and quality delivery services.

Cainiao have already attracted several of the country’s biggest courier firms in joining the alliance this including Shentong Express and Zhongtong Express. The said alliance is expected to roll out the upgraded packages of services, from same day and next day delivery in Alibaba’s business to customer site Tmall. Cainiao’s goal is for the alliance to serve the 10 million enterprises and have an annual capacity in delivering 100 billion parcels in the span of eight years.

Founded by Alibaba and several logistics companies, Cainiao differs from the others that it rather expand its own network and operates a proprietary logistic information platform that ill form a link of networks of providers, distribution centers, warehouses that will offer efficient and cost savings system.

Founded by Alibaba and a consortium of logistics companies, Cainiao is different in that rather than expanding its own network it operates a proprietary logistics information platform, that links a network of providers, warehouses and distribution centers, that offers better efficiency and cost savings.

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