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

Worldwide IT Outage: The Pressure on Cybersecurity Vendors

The global IT outage continues to cause disruption for major industries worldwide, highlighting the growing complexities of cloud computing environments

Unleashing the Full Potential of Enterprise IT Investments

Joe Baguley, CTO EMEA at Broadcom, shares his insights into how businesses can revitalise their IT investment strategies in order to boost innovations

Worldwide IT Outage: Industries Face Total Disruption

Multiple business sectors around the world are impacted by a global IT outage impacting Windows PCs, causing major companies to halt services

Apple Shares Surge: What This Means for AI Growth Efforts

AI & Machine Learning

Cloud vs AI: Why Enterprises Prioritise Data Management

Cloud & Cybersecurity

Gartner: Gen AI Growth Driving $5tn Global IT Spending

AI & Machine Learning