E-commerce company Alibaba Group agreed yesterday to take a minority stake in China-based logistics company Shanghai YTO Express.
Neither the financial details of the deal nor the size of the stake Alibaba will acquire have been disclosed.
Alibaba’s investment is motivated by its slowed growth in China, partly caused by a logistics sector that has failed to keep track with the country’s booming e-commerce industry.
The conglomerate’s logistics subsidiary, Cainiao, will assist YTO in improving logistics management, as well as its rural and international delivery systems.
Alibaba operates a range of services in China including consumer-to-consumer shopping portal Taobao and business-to-consumer online retailer Tmall. YTO is one of the 14 logistics companies Cainiao works with in the country.