Alibaba, a Chinese e-commerce company, announced that it has agreed to take a minority stake in Shanghai YTO Express (Logistics) Co., Ltd, a Chinese logistics service provider. Following the acquisition both companies plan to cooperate in developing optimal logistics solutions for China in order to raise operational efficiency in the industry.
YTO Express is one of 14 logistics partners that already work with Cainiao, the logistics affiliate of Alibaba. Cainiao and YTO Express will work together to enhance their logistics management capabilities and international and rural delivery services. Alibab expects this to help improve the experience of its merchants, consumers and other logistics service providers.
Cainiao was founded by Alibaba Group in May 2013 in partnership with a consortium of logistics companies. The company was established to build a China-wide logistics platform that connects delivery companies, warehouses and distribution centres together in order to enable higher efficiency in China’s logistics industry and a better customer and merchant experience.
“As a leading player in China’s logistics industry, our collaboration with Alibaba Group and Cainiao will boost our strategic product and service offerings to catalyze a breakthrough in efficiency within China’s logistic sector,” said YTO Express’ Chairman, Yu Wei Jiao.
Judy Tong, Senior Vice President of Alibaba and President of Cainiao said, “The strategic investment in YTO Express reflects our commitment to improving quality and service standards in China’s logistics industry. As a platform, we look forward to working closely with partners who share our vision in developing an efficient logistics infrastructure and solutions that will drive development of China’s logistics sector in order to fully satisfy our customers’ needs.”
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