China's largest e-commerce company Alibaba Group today unveiled Cainiao Network Technology Co Ltd to create a logistics network with an initial capital input of 100 billion yuan (US$16.1 billion).
"The new company is named Cainiao (meaning rookie in Chinese) because we're a group of newcomers in the logistic industry but we will keep learning and grow with other startups," said Shen Guojun, chairman of Yintai Holdings Co and chief executive officer of Cainiao Network.
"We'll devote at least 10 years to develop the network and hope to reduce logistic cost for small vendors," said Jack Ma, chairman of Alibaba Group. "The new venture will focus on serving courier companies as logistics is a key factor for further growth of e-commerce."
The new venture is registered in Shenzhen Qianhai, a zone for financial, logistics, IT and modern services industries west of Shenzhen.
Construction of warehouses and other logistic infrastructure is going on in a dozen of inland cities where logistic service is less developed and online purchases take days to arrive.
The plan, first announced in January, is a part of Alibaba's bigger strategy to provide Internet infrastructure for startup companies and small vendors, connecting their online stores with a virtual logistics network.
Other Cainiao Network shareholders include Fosun Group, major courier companies, China Life Insurance, and CITIC Group.
Copyright ©1999-2011 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
