Alibaba acquires stake worth $693 million in Chinese courier company
Category: #retail  By Saif Ali Bepari  Date: 2019-03-11
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Alibaba acquires stake worth $693 million in Chinese courier company

The e-commerce juggernaut is endeavoring to expand its smart logistics network through the latest investment.

Alibaba Group Holding Ltd., the multinational e-commerce giant, is currently in the news for investing up to $693 million in the Chinese courier company, STO Express, acquiring a 14 per cent stake in the company. Allegedly, the latest move signifies Alibaba’s fourth major investment in a China-based courier company.

STO Express affirmed in a recent statement that its controlling stakeholder, Deyin Investment, has planned to establish a new subsidiary, which would own a 29.9 per cent stake in the courier company. The shares of the company have shot up with the trade opening and hit the upper 10 percent limit on SZSE (Shenzhen Stock Exchange). Sources further reported that Alibaba is expected to invest $693.44 million (4.66 billion yuan) in the new subsidiary for a 49 percent stake and will, through extension, hold over 14 percent of STO Express. In the words of Alibaba, it has invested in one of the leading express delivery companies in China.

In a recent statement, Alibaba revealed that it is likely to deepen its existing partnership with STO in the areas of technology, New Retail logistics and last-mile delivery throughout China. The company further affirmed that the latest investment is a step further in its pursuit of making 24-hour delivery available anywhere in China, besides 72 hours globally.

According to a report by South China Morning Post, Alibaba’s additional investment in the extensive courier service space has come up amidst increasing demands for delivery of parcels in China. Alibaba, for the record, has earlier invested in courier service companies including ZTO, YTO Express Group, Suning Logistics and BEST.

If reports are to be believed, STO Express is among the many companies to work with Alibaba under its logistics division Cainiao, which was launched in 2013. Cainiao, for the uninitiated, works with several logistics companies to ensure safe delivery of packages, and provides necessary software and shares data with carriers, warehouses, etc.



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Saif Ali Bepari

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Saif Ali Bepari

Saif Ali Bepari currently works a content writer for Market Size Forecasters, Algosonline, and numerous other platforms. A Computer Science graduate who has a zest for writing over coding, he has previously dabbled into technical and creative writing. He now pens down...

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