Alibaba planning $16B logistics network

Alibaba planning $16B logistics network

Summary: Chinese e-commerce giant is partnering industry players to build a logistics network, with the aim of making 24-hour domestic deliveries possible in 8 to 10 years time.

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TOPICS: E-Commerce, China
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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.

Chinese companies are building a US$16 billion logistics network.
Chinese companies are building a US$16 billion logistic network.

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.

Topics: E-Commerce, China

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

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