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Alibaba strengthens logistics network by investing US$966 million in YTO Express, doubling its stake
- Chinese e-commerce giant Alibaba has increased its stake in YTO Express from 10.5 per cent to 22.5 per cent
- The latest investment in YTO Express, one of China’s largest logistics service providers, comes amid an e-commerce boom driven by the stay-home economy
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Chinese e-commerce giant Alibaba Group Holding has invested an additional 6.6 billion yuan (US$966 million) in YTO Express, more than doubling its stake in the major Chinese courier from 10.5 per cent to 22.5 per cent, in its latest move to strengthen its logistics network.
Hangzhou-based Alibaba has agreed to buy an additional 12 per cent of YTO’s shares from founding couple Yu Huijiao and Zhang Xiaojuan, at a price of 17.406 yuan per share, according to a YTO statement on Wednesday, which added that the founding couple will continue to be controlling shareholders.
The companies will collaborate in four main areas: express deliveries, air cargo, building a global logistics network and supply chain, and digital technologies, the statement said.
“We are pleased to further strengthen the strategic partnership with YTO, focusing on digitisation and globalisation to enhance customer service capabilities,” said a spokeswoman from Alibaba, which is the parent company of the South China Morning Post.
Alibaba’s latest investment reflects aggressive efforts by Chinese e-commerce players recently to broaden their logistics and transport infrastructures to meet fast-growing consumer demand, which has picked up pace this year due to the stay-home economy created by Covid-19 lockdowns and travel restrictions.
JD.com, the country’s second-largest e-commerce operator after Alibaba, also agreed to buy a controlling stake in express transport firm Kuayue-Express Group Co for 3 billion yuan last month.
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