Retailing, Franchising, and Consumerism Business Intelligence in China

Alibaba's Logistics Subsidiary Launches New Alliance

Cainiao Network Technology, logistics subsidiary of Alibaba Group, announced that the company will establish the Cainiao Alliance by cooperating with logistics partners to improve e-commerce logistics in China.

The Cainiao Alliance will first launch quality products like same-day delivery and next-day delivery and will promise compensation if goods are not delivered on time. Cainiao Alliance's goal is to serve ten million businesses and deliver 100 billion packages annually over the next five to eight years.

Zhang Yong, chief executive officer of Alibaba Group and chairman of Cainiao Network, said that logistics is the important infrastructure component for China's new economy. Cainiao Network hopes to use its technology and data to enable its logistics partners to jointly provide high-quality and reliable logistics services, create more logistics products, form industry-leading brands, improve end-to-end supply chain efficiency, and bring better experiences to more consumers.

Meanwhile, Cainiao Network announced that to encourage vendors to join Cainiao Alliance and make quality logistics service a routine part of how they do business, Cainiao Network will invest CNY1 billion as the starting fund of the alliance. Vendors who join Cainiao Alliance before May 28, 2016 will gain a large discount on service fees.

Image Credit: Tashatuvango

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