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Alibaba Group Holding's logistics arm Cainiao unveiled an express delivery service on Wednesday to facilitate sales from its e-commerce platforms, in Joe Tsai's first major business move since he was named incoming group chairman last week.
The new service, under the brand name Cainiao Express, is based on the original courier operation of Tmall Supermarket, and promises half-day, same-day and next-day door-to-door delivery across 300 Chinese cities, the Hangzhou-based company said.
Cainiao Logistics, one of the six spin-off units from Alibaba, is seeking an initial public offering in the next 12 to 18 months.
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Tsai, the chairman of Cainiao, will also take over the Alibaba chairmanship from Daniel Zhang Yong in September.
At Cainiao's Global Smart Logistics Summit, Tsai said via video that logistics has played a vital role in China's e-commerce development and that Cainiao will seek to improve efficiency through use of artificial intelligence technologies.
"Consumption remains the most important driving force for economic development [and] online retail is one of the main consumption scenarios. Alibaba hopes to continue promoting the economy through consumption," Tsai said in his first public remarks since returning to the frontlines of the company he co-founded nearly 25 years ago. Alibaba owns the South China Morning Post.
With the express delivery service, Cainiao promises to compensate consumers for any delivery delays or damage caused during shipment. JD.com, a fierce e-commerce rival of Alibaba, is known for its speedy delivery service through its massive in-house logistics arm, which later listed in Hong Kong as JD Logistics.
Incoming Alibaba Group chairman Joe Tsai in this photo dated May 10, 2023. Photo: Handout alt=Incoming Alibaba Group chairman Joe Tsai in this photo dated May 10, 2023. Photo: Handout>
Cainiao said its new service is available for merchants on Alibaba and other platforms. Local alcohol giant Tsingtao Brewery, along with Alibaba-backed retailers Hema and Intime Department Store, have signed up for the new Cainiao service.
The launch of Cainiao Express also shows Alibaba's desire to take more market share in online groceries, where timely delivery is key, said Li Chengdong, founder and chief analyst at Beijing-based e-commerce consultancy Dolphin.