Alibaba May Spend $15 Billion on Automated Logistics According to WSJ
Updated: Feb 24
Alibaba is reportedly planning to invest $15 billion over the next five years to “build up its global-logistics infrastructure and development of robots sorting and fulfilling merchandise”, according to the Wall Street Journal. Alibaba says the money will be used to increase research and development in logistics data technology, as well as for development of smart warehousing, smart delivery and global logistics infrastructure, all of which are core to building the global logistics network of the future. Alibaba is said to be the world’s largest e-commerce company, mainly concentrating on the business-to-business sector rather than retail, but until now, it has relied on external companies to provide its logistics. Now, the company has invested an additional $801 million to buy a controlling stake in Cainiao Smart Logistics. Cainiao had been Alibaba’s main logistics affiliate and Alibaba already had a 47% stake in the company. Daniel Zhang, CEO of Alibaba Group, says: “Our goal with this investment is to provide comprehensive, first-class experience for consumers globally. Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world”.