Chinese e-commerce giant Alibaba Group and several companies are partnering to set up a 100 billion yuan (US$16 billion) logistics network in the country that aims to make 24-hour domestic deliveries possible.
In a Reuters report on Friday, an Alibaba spokesperson confirmed plans to set up the logistic network, and that it was spearheading the product in cooperation with industry partners.
"This is consistent with what we've said in the past that logistics is a key industry bottleneck for e-commerce growth in China, and that everyone involved in this sector needs to work together to drive rapid development," the spokesperson told the newswire.
Rumors of the logistics network first surfaced on Thursday. A Sina Tech report on Thursday cited unnamed sources who said that Alibaba was in discussions with industry players and financial institutions to build such a network.
The source told Sina Tech that the project dubbed China Smart Logistic Network will take 8 to 10 years complete.
The venture will be chaired by Jack Ma, founder and chairman of Alibaba Group, the source added.
China's e-commerce is expanding fast. The Chinese government said that it aims to drive the value of online shipping to 18 trillion yuan (US$2.86 trillion) by 2015.