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Alibaba ties up with China Post to strengthen its logistics

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Press Trust of India Beijing
Last Updated : Jun 13 2014 | 5:27 PM IST
China's e-commerce giant Alibaba has signed a deal with the state-owned China Post, the largest postal service provider here to strengthen its logistics arm in a series of deals before a planned US listing.
Alibaba founder and chairman Jack Ma and China Post's general manager Li Guohua inked a framework deal yesterday with an ambition of delivering online purchases to any place in the country within 24 hours.
The two companies will share warehouses, processing centres and delivery resources, aiming to build a smart logistics network providing easier and faster delivery services to online sellers, state-run Xinhua news agency reported.
In possession of e-commerce big data and Internet technology, Alibaba hopes to extend its reach to third and fourth-tier cities and even the countryside with the help of China Post's offices in rural areas.
The two parties are yet to reveal details of the deal.
As parent company of China's largest consumer-to-consumer portal Taobao.Com, Alibaba has great need for delivering online purchases.

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Ma founded the Rookie Network Technology Co Ltd last May to start Alibaba's own logistics services.
Rookie has attracted investment from major delivery companies including Shentong Express, ZTO Express and YTO Express.
As Alibaba is set to sell shares in the US equity market, the company is actively expanding its business outside China to boost its international profile.
Last month, Alibaba spent USD 249 million on a 10.35 per cent stake in Singapore Post Ltd, a leading provider of e-commerce logistics services in southeast Asia.
Yesterday's deal also illustrated Ma's global ambition as Alibaba is considering international deliveries through China Post's global logistics network.
For China Post, the deal is expected to revitalise its delivery business.
Although it has more than 100,000 offices across the nation and dominates in deliveries of post like confidential files, the company is challenged by rapidly expanding private express firms with cheaper and faster services.

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First Published: Jun 13 2014 | 5:27 PM IST

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