Alibaba pushes further into Chinese logistics market with plans to buy stake in STO Express

By Laura Mullan
Alibaba is continuing its push into the logistics sector with plans to buy a stake in Chinese courier service firm STO Express. The deal represents the...

Alibaba is continuing its push into the logistics sector with plans to buy a stake in Chinese courier service firm STO Express.

The deal represents the Chinese technology company’s fourth investment in an express courier firm.

To date, Alibaba owns 10% of Chinese courier ZTO, 11% of YTO, and 27.9% of Best Logistics.

In 2017, the company also invested an additional $807mn in Cainiao to gain a controlling stake in the firm.

SEE ALSO:

On Monday (11 March), STO Express announced that its controlling shareholder, Shanghai Deyin Investment Holdings Co. Ltd., plans to create a new subsidiary that will own a 29.9% stake in the courier firm.

Alibaba says it will pay 4.66bn yuan (US$693.3mn) for a 49% stake in the new subsidiary and, in turn, it will hold more than 14% of STO Express.

In a statement, Alibaba confirmed its investment in "one of the top five express delivery companies in China".

"We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics," the company said.

"This investment is a step forward in our pursuit of the goal of 24-hour-delivery anywhere in China and 72 hours globally.”

Share

Featured Articles

TECH LIVE LONDON: An overview of the hybrid technology show

We take a look at the first day of Tech Live London with insights from technology leaders from companies such as IBM, Microsoft and Vodafone

TECH LIVE LONDON: Begins tomorrow at 10am!

Our marquee technology event is nearly here. There's still time to claim your free ticket (worth £295). Look forward to welcoming you to the Tobacco Dock!

Executive Q&A: Marc Lueck, CISO EMEA, Zscaler

As we prepare to welcome the Zero Trust leaders to TECH LIVE LONDON this June 23-24, we take the opportunity to chat to Zscaler CISO of EMEA, Marc Lueck

TECH LIVE LONDON: Registering, networking and logistics

Digital Transformation

New speaker from Infosys announced for TECH LIVE LONDON!

Digital Transformation

New speaker from Bernadette announced for TECH LIVE LONDON!

Digital Transformation