Alibaba raising stake in Cainiao to majority, investing $15 billion to grow logistics

HONG KONG (Reuters) – Chinese e-commerce giant Alibaba Group Holding Ltd is raising its stake in logistics affiliate Cainiao Smart Logistics Network Ltd to 51 percent from 47 percent by investing 5.3 billion yuan ($ 801.21 million), Alibaba said on Tuesday.

Alibaba also said in a statement it will invest another 100 billion yuan ($ 15.12 billion) in the next five years to expand its global logistics network.

The additional investment will be used in research and development of Cainiao’s logistics data technology, and smart warehousing and smart delivery development, among other things, it said.

Alibaba co-founded Cainiao in 2013, with partners including department store owner Intime Group, conglomerate Fosun Group and a few logistics companies.

Reporting by Kane Wu; Editing by Muralikumar Anantharaman

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Cloud wars: China’s deep-pocketed Alibaba takes on AWS

China’s Alibaba Group Holding last week said it would invest $ 1 billion into its Aliyun cloud computing arm to challenge Amazon Web Services. This move kicks off what could become a global battle between the two e-commerce giants. Also, it could change the dynamics in the cloud market now dominated by AWS, Google, IBM, and Microsoft.

A billon dollars is not chump change, but it’s not a game-changing amount, either. For example, last year IBM invested $ 1.2 billion to significantly expand its global cloud footprint. IBM already had a good head start in the cloud when it tossed in that $ 1.2 billion, yet that investment is unlikely to catch IBM up to AWS.

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