Alibaba ploughs $693m into delivery company to offer “24-hour delivery anywhere in China”
Alibaba has continued to grow its dominance in the Chinese delivery sector, ploughing $693 million (£530 Million) into the fourth domestic logistics company.
The Chinese ecommerce giant purchased a 14.65 per cent stake in STO, one of China’s leading logistics and delivery companies, as it attempts to boost falling spend in its home country.
This follows news that the Beijing is due to introduce incentives including reduced employee pension costs and lower VAT rates for logistics companies in an effort to grow the sector.
Unlike its major rivals JD.com and Amazon, Alibaba doesn’t own the companies who deliver the billions of items sold on its platform every year, instead buying stakes in companies and offering them it substantial tech platforms to improve their operations.
It also owns a 10 per cent stake in ZTO, an 11 per cent stake in YTO and a 27.9 per cent stake in Best Logistics, forming part of its goal to streamline logistics and create jobs in China.
“We will deepen our existing collaboration with STO in technology, last-mile delivery across China and new retail logistics,” Alibaba said.
“This investment is a step forward in our pursuit of the goal of 24-hour delivery anywhere in China and 72 hours globally.”