Alibaba Group, China's largest e-commerce company, said Thursday it has teamed up with major express delivery companies and property developers to launch the China Smart Logistic Network (CSN), with an initial investment of 100 billion yuan ($16 billion), to facilitate the country's fast-growing e-commerce business.
The network project, initiated by Alibaba, has attracted courier firms such as SF Express and Shanghai YTO Express (Logistics) Co, property developer China Yintai Holdings Co, and investment company Fosun Group, Alibaba said in a statement sent to the Global Times on Thursday.
Within eight to 10 years, Alibaba aims to build a nationwide logistics network that can sustain a daily e-commerce business of 30 billion yuan and enable packages to be delivered to every part of the country within 24 hours.
The participants will set up a new venture, with Alibaba's CEO Jack Ma Yun as chairman and Yintai's chairman Shen Guojun as CEO. First-stage investment will amount to 100 billion yuan, Alibaba said.
Alibaba announced last week that Ma will step down from his post as CEO in May while remaining full-time chairman of the e-commerce group.
"Ma's new title indicates that he will focus on the construction of the logistics network, as the sector is one of the main barriers to Alibaba's e-commerce business," Su Huiyan, an analyst at iResearch Consulting Group, told the Global Times on Thursday.
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