Alibaba Preps Logistics Move

With its eyes on improving logistics for its ever-expanding global plans, The Alibaba Group is exploring a partnership with Hangzhou-based logistics firm Best Logistics Technology Company, with a specific goal of developing cloud-based logistics services, according to Beijing-based newspaper The Economic Observer.

It’s not as though the two companies are not acquainted. Best Logistics said 80 percent of its business turnover stems from Tmall, the online retailer owned by Alibaba, and more than 3 million of the orders placed with its cloud computing technology-based services are generated at Tmall, the report said.

“Best Logistics is building an operational model for a cloud order fulfillment center (OFC), which is based on cloud computing technology and the integration of online and offline services,” the story said. “The model is expected to establish Best Logistics’ dominance in the industry if it is able to command more than 70 percent of orders from e-commerce companies.”

The logistics company has launched five rounds of fundraising, receiving US$15 million from Alibaba Group founder Jack Ma and Terry Gou, who is the chairperson of Taiwanese electronics giant Foxconn, the story said.

During all of this, Best Logistics is also preparing to go public, the story said.

“The logistics company operates in the supply, fast freight, express delivery, cloud platform and finance sectors, with the cloud platform sector being the most threatening for the market, which is termed by the company as Cloud OFC,” it noted. “Currently, Best Logistics’ Cloud OFC has entered strategic alliances with 300 logistics firms, which are reliant on the cloud platform to boost their business.”