China e-commerce giant spearheads new logistics network
The Alibaba Group, which runs China’s largest e-commerce platforms, has partnered with a number of companies to invest the first 100 billion Yuan ($16.08 billion) into a project to build a countrywide logistics network, according to a local newspaper reporter.
According to reports by a Beijing News, the 'China Smart Logistics Network', will be capable of delivering products across China within 24 hours, with other reports claiming that the network will be support up to ten trillion Yuan ($1.6 trillion) worth of transactions a year.
Reports suggest that the Alibaba group is spearheading the project in co-operation with industry partners, which comprises of private equity firms, express companies and a bank. The project will be chaired by Jack Ma, founder and chairman of Alibaba Group, with the aim to complete the network within eight to ten years.
Alibaba have yet to formally confirm or deny the reports, however a spokesperson released the following statment by email to Reuters: "…the logistics is a key industry bottleneck for e-commerce growth in China and that everyone involved in this sector needs to work together to drive rapid development.”
Alibaba, the owner of China’s largest e-commerce platforms by transaction volume; Taobao Marketplace and Taobao Mai, offer platforms to sell everything from imported almonds to precious jade from millions of virtual storefronts. The company exceeded 1 trillion Yuan in revenue for the first time in January-November 2012.