Industry Observations from Nol van Fenema - Part 2

Alibaba takes minority stake in YTO Express
Chinese leading e-commerce company, Alibaba, has agreed to take a minority stake in Shanghai-based cargo airline and logistics provider YTO Express.
Alibaba has been working for years to improve China’s logistics industry to provide quicker and more-reliable delivery of e-Commerce orders from Taobao, China's largest online shopping destination and Tmall, the country's largest third-party platform for brands and retailers.
Inadequate logistics services in China have affected e-commerce growth in the country as well as cross-border shipments.
In a statement, both companies said that they plan "to cooperate in developing optimal logistics solutions for China in order to raise operational efficiency in the industry."
YTO Express is one of 14 logistics partners that already work with Cainiao, the logistics affiliate of Alibaba, which was founded in May 2013 in partnership with a consortium of logistics companies.
The company was established to build a China-wide logistics platform that connects delivery companies, warehouses and distribution centres together in order to enable higher efficiency in China’s logistics industry and a better customer and merchant experience.
Cainiao and YTO Express will work together to enhance their logistics management capabilities and international and rural delivery services. Alibaba expects this to help improve the experience of its merchants, consumers and other logistics service providers.

Gulf Warehousing Company inks deal with UPS
Doha-based Gulf Warehousing Company, a leading logistics provider in Qatar, has signed an agreement with United Parcel Service (UPS) to become the authorised service contractor for its express parcel service starting from June.
 
Under the agreement, GWC will provide UPS products and services, including express parcel delivery, as well as access to the UPS global network serving over 220 countries and territories worldwide, a statement from the Qatari company said.
 
Gulf Warehousing Company was established in 2003 and is the largest supply chain service provider in Qatar. The company earned QAR 140.3 million (US$38 million) in net profits for 2014 on gross revenues of QAR 673.3 million.

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