Logistics arm of Chinese e-commerce giant JD.com is to acquire a controlling stake in Shenzhen-based courier services provider Kuayue Express in a deal valued at RMB3 billion. JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, is to acquire a controlling stake in Shenzhen-based courier services provider Kuayue Express in a deal valued at RMB3 billion (US$434 million).
Founded in 2007, Sequoia Capital-backed Kuayue Express has established an integrated transport network with more than 17,000 delivery vehicles that serve more than 500 cities as well as 13 freight charter aircraft, according to international reports. It employs more than 50,000 staff.
The South China Morning Post noted that JD.com’s latest deal shows the “aggressive push” being made by Chinese e-commerce players to broaden their logistics and transport infrastructure to meet fast-growing consumer demand – which has picked up pace this year amid the coronavirus pandemic lockdowns and travel restrictions.
As reported today, Cainiao Network, the logistics arm of Chinese e-commerce services provider Alibaba, increased its revenues by 54% to RMB7.7 billion (US$1.12 billion), excluding inter-company transactions, for the three months ending 30 June 2020, compared with the same period last year.
The growth in its third-party logistics (3PL) business was primarily due to the rises in both average revenue per order and volume of orders fulfilled from its fast growing cross-border and international e-commerce retail businesses, its parent company said.
Alibaba underlined that Cainiao Network “continues to improve the efficiency of its partners and China’s logistics industry overall through its data technology and infrastructure investments”.
It noted that the COVID-19 pandemic had caused significant disruptions to the import and export of goods by foreign businesses and organisations with operations in China, although Cainiao had gained some business from this.
Source: Lloyd’s
