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Alibaba to split off its Cainiao logistics unit

Alibaba Group Holding Ltd, the Chinese e-commerce giant, has announced plans to split off its Cainiao logistics unit, which specializes in parcel deliveries, into a separate entity.

This move is expected to provide greater flexibility for both businesses, as they seek to adapt to changing market conditions and meet the growing demand for e-commerce and logistics services in China and around the world.

The decision to spin off Cainiao comes at a time when Alibaba is facing increasing competition from rivals such as JD.com and Pinduoduo, as well as a crackdown on internet companies by the Chinese government.

The split is part of a broader restructuring effort aimed at streamlining Alibaba’s operations and improving its profitability.

Cainiao was founded in 2013 by Alibaba and a group of logistics companies, with the aim of improving delivery times and reducing costs for e-commerce transactions.

Since then, it has grown rapidly, becoming a key player in China’s logistics industry and expanding its operations to cover more than 200 countries and regions.

Under the new plan, Alibaba will retain a controlling stake in Cainiao, while other shareholders, including logistics firms such as YTO Express and STO Express, will also hold shares in the company.

The move is expected to give Cainiao greater autonomy, allowing it to raise funds independently and pursue its own growth strategies.

The decision to spin off Cainiao reflects Alibaba’s recognition of the growing importance of logistics in the e-commerce sector.

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