Alibaba takes stake in YTO Express

Chinese e-commerce giant Alibaba Group announced a strategic investment in one of the country’s leading express delivery services, a sector that is expected to see soaring growth in coming years.


Alibaba takes stake in YTO Express


Chinese e-commerce giant Alibaba Group announced a strategic investment in one of the country’s leading express delivery services, a sector that is expected to see soaring growth in coming years.

According to a statement released by Alibaba on 14 May the company, along with Yunfeng Capital set up by Alibaba chairman Jack Ma, acquired a stake in YTO Express, which controls a 20 per cent share in the country’s express delivery market. YTO is one of 14 logistics partners that work with Alibaba’s logistics unit, Cainia.

Alibaba did not disclose the exact amount of the investment or the size of the stake to be acquired in YTO, but it is believed to be nearly a 10 per cent stake. YTO chairman Yu Weijiao said the two companies hope to build a global express delivery service that can provide more variety in products and better last-mile service.” Chinese private delivery services are still lagging behind global delivery giants such as UPS and FedEx in terms of the management team, networks and the information system. I believe Alibaba can help bridge the gap,” Yu said.

YTO unveiled a plan to create a global package delivery alliance last month that attracted interest from over 10 companies, including CJ Korea Express and Japan’s Seino Transportation. In addition, YTO and four other delivery companies – STO Express, ZTO Express, Yunta and SF Express – have reportedly set up a joint venture based in Shanghai. The five companies are equal partners in the venture, with Yu named as chairman, according to reports.