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BEIJING, June 28 (TiPost)— A new broom sweeps clean. Cainiao Smart Logistics Network Ltd launches new services after Alibaba Group started its biggest ever reorganization and the veteran Joseph C. Tsai was named as the logistics arm’s chairman.
Credit：Visual China
Cainiao will partner with AliExpress, an online retailer under Alibaba, to roll out an international express service—Five-WD Global Delivery, which means to deliver cross-border parcels within five working days, Cainiao CEO Wan Lin announced at its annual Global Smart Logistics Summit at Wednesday. Cainiao will initially offer the service in key overseas markets. Through the operation optimization across first-mile pickup, line haul, overseas distribution and last-mile delivery, the service, from payment to delivery, is expected to be 30% faster than the industry average, Wan said. Wan said his company will further operation in key markets such as Europe, North America and Southeast Asia, and establish the local logistics network there at a pace of one to two foreign countries per year.
Wan Lin unveiled the same day a self-operated premium express service in China under the brand name Cainiao Express. The new service features half-day delivery, doorstep delivery and night-time pickup to meet demand for quality and differentiated express service. Cainiao will also develop a three-tiered supply chain offering including the premium half-day delivery, the smart next-day delivery and an economy shipping option.
According to Wan, the next decade will emerge brand new opportunities for smart logistics, and accordingly, Cainiao will be engaged in building a leading global smart logistics network. The efforts include creating three long-chain logistics networks covering domestic logistics, cross-border logistics, and overseas logistics, developing three short-chain businesses in last-mile post stations, logistics infrastructure, and logistics technology.
Alibaba holds a 67% stakes in Cainiao, a supply chain, logistics and delivery services provider established in 2013. The Chinese e-commerce giant unveiled late March to split into six business groups, five of which including Cainiao will have the flexibility to raise external capital and potentially to seek its own IPO, with the exception of Taobao & Tmall Group, which will remain wholly-owned by Alibaba Group. Alibaba’s chairman and CEO Daniel Zhang called the move “the most significant governance overhaul” since Alibaba’s inception and said each business group is fully responsible for its performance, with financial independence.
Soon after the overhaul unveiled, Bloomberg reported the logistic arm Cainiao has started preparation for its Hong Kong IPO, which seems to be the first in Alibaba’s six units to be a listed company. With the current valuation at more than US$20 billion, Cainiao could go public as early as end of the year, the report cited people with knowledge of the matter. Another report last month said Freshippo, with the market value arbout US$242 billion, is mulling an IPO in Hong Kong, without details like the planned fundraising size or the company’s valuation.
Alibaba said last month that its board of directors approved listing plans about two business groups. Cainiao was approved to explore an IPO with the target to complete the deal in the next 12 to 18 months. Freshippo was approved to execute an IPO and expected to be completed in the next 6 to 12 months. The board also gave the green light to a full spin-off of Alibaba Cloud Intelligence Group via a stock dividend distribution to shareholders, aiming to complete the breakup in the next 12 months and make the group an independent publicly listed firm.
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CainiaoLaunchesExpressServices,FirstMoveSinceAlibabaBreakupAnnounc
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