Cainiao Network – Alibaba’s logistics company – has launched a half-day express delivery service in eight major Chinese cities, including Shanghai, Hangzhou and Shenzhen.
The service, called Cainiao Express, is an initiative of new Alibaba Chairman Joe Tsai, in partnership with Tmall Supermarket. Cainiao Express will also be available in Guangzhou, Dongguan, Foshan, Huizhou, and Chengdu.
If a customer places an order before noon, it will be delivered by 9 p.m. If the order is placed before midnight, it will be delivered by noon the following day. Cainiao said it will soon expand the service to seven more cities.
At the Global Smart Logistics conference in June 2023, Cainiao pledged to offer half-day, same-day, and one-day delivery in 300 Chinese cities. Along with the fast delivery service, the company also promised to compensate customers for any delays or damage during delivery.
Cainiao's new service shows fierce competition in China's delivery market, which is currently dominated by SF Holding, ZTO Express and JD Logistics.
According to data from the National Postal Administration, more than 60 billion packages were delivered nationwide in the first half of this year, up 17% year-on-year.
During the recent 618 shopping event, which started in late May 2023 and ended in mid-June 2023, more than 400 parcels were received every day despite weak customer spending.
Last month, Cainiao also introduced a new delivery program between the mainland and Hong Kong. Packages sent from Cainiao’s warehouses in the mainland will be delivered to Hong Kong the following day. The company will compensate up to 60 yuan ($8.9) for each order that is not delivered within 48 hours.
Cainiao, one of Alibaba’s fastest-growing divisions, is preparing for an IPO in the next 12 to 18 months. Cainiao’s revenue rose 18% to 13.6 billion yuan in the first quarter of 2023 from a year earlier, accounting for about 7% of Alibaba’s total revenue for the period.
(According to SCMP)
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