Top Stories
Alibaba YTO deal_GBO_Image

Alibaba increases its stake in YTO Express by investing $966 million

Alibaba and YTO Express will partner in digital technology and air cargo

Alibaba has invested $968 million in YTO Express which increased its stake from 10.5 percent to 22.5 percent, media reports said. The latest investment by the ecommerce giant expects to boost its logistics network.

The development comes at a time when Chinese ecommerce players are scrambling to broaden their logistics and transport infrastructures to meet fast-growing consumer demand which has increased owing due to the pandemic.

A spokeswoman from Alibaba told the media, “We are pleased to further strengthen the strategic partnership with YTO, focusing on digitisation and globalisation to enhance customer service capabilities.”

It is reported that as part of the deal, both Alibaba and YTO Express will partner in areas such as digital technology, air cargo, supply chain and develop a global logistics network.

According to YTO, Alibaba will acquire an additional 12 percent of YTO at 17.406 Yuan per share from its founders. Furthermore, the founders will continue to control the shareholders.

China’s logistic industry has been thriving in the past few years, mainly because of the ecommerce boom. It is reported that delivery firms in China dispatched 33.9 billion parcels in the first quarter of this year which is 22.1 percent more than last year. Furthermore, the revenue from the logistics industry recorded a 12.6 percent year-on-year growth to 382.4 billion Yuan.

The global logistics industry is expected to thrive because of the growing demand.

Related posts

Google’s competitor Neeva search engine shuts down

GBO Correspondent

CAAC imposes strict regulation on international flights to curb Covid-19 infections

GBO Correspondent

InfraCo and Helios launch climate-focused Africa vehicle CLEAR

GBO Correspondent