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Alibaba Takes Control of Logistics Business Cainiao as It Seeks Global Expansion

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Daniel Patel
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BEIJING— Alibaba Group Holding Ltd. BABA -4.80% has become the majority owner of its logistics affiliate, a move that could allay concerns over financial transparency that drew the attention of U.S. securities regulators last year.

Alibaba is investing 5.3 billion yuan ($800.8 million) to raise its stake to 51% from 47% in Cainiao Smart Logistics Network Ltd.

It will also invest 100 billion yuan ($15.11 billion) over the next five years to build up its global-logistics infrastructure and development of robots sorting and fulfilling merchandise.

Cainiao helps online merchants choose from among 15 delivery firms by providing information on cost and delivery time.

About 70% of Cainiao shipments are routed by algorithms to ensure the network’s 2 million couriers get packages to customers as efficiently as possible.

Alibaba said the additional investment is part of its strategy to create a “seamless experience for shoppers.” The company said it aims to fulfill orders in China within 24 hours, and within 72 hours anywhere in the world.

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