First E-commerce, then payment systems, followed by micro-finance and now delivery systems. The latest announcement from Alibaba is the creation of a modern express delivery system called ChinaSmart Logistic network (CSN). The investment required is said to be 100 billion yuan.
Initiated by Alibaba the network project has attracted courier firms SFExpress, Shanghai YTO Express (Logistics) Co., property developer China Yintai Holdings Co. and investment company Fosun Group. Within 8 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 evry part of the country within 24 hours.
The participants are planning to set up a new joint venture with Alibaba’ CEO Jack Ma as chairman and Yintai’s Shen Guojun as CEO. Jack Ma believes that China’s current logistic systems are one of the main barriers for developing e-commerce.
Source: People’s Daily Online