Cainiao sets its next ambitious target

The logistics arm of Chinese Alibaba Group announced the launch of a five-day global delivery service, committing to deliver cross-border parcels within five working days. This will be done in close cooperation with its parent company's international retail platform, AliExpress. Further to this, Cainiao succeeded in considerably upping its market penetration in Spain. The growth on the Iberian Peninsula was mainly driven by the online platform for delivery and logistics services, EcoScooting, which Cainiao acquired last year.

According to market experts, the new product offering by the Hangzhou-based firm, announced at its 2023 Global Smart Logistics Summit last week, will set a new industry standard in the global express business.

Interlocked services from beginning to end
Cainiao intends to achieve the five-day target promise through full-chain operational optimization and workflow streamlining across first-mile pick-up, line haul, overseas distribution, and last-mile delivery. In other words, its fulfilment requires precisely timed and coordinated delivery services from A to Z along the entire supply chain. The logistics company added that the new product will bring about an average of 30% uplift in delivery speed compared to the global industry standard.
CEO, Wan Lin stated that his company will focus on key logistics nodes in Europe, North America, and Southeast Asia to deepen its capabilities in key overseas markets as part of its globalization push. It aims to establish one to two local warehousing and distribution centers each year.

New product
The five-day global delivery service is complemented by kicking off ‘Cainiao Express’, a self-operated premium express service featuring key offerings such as half-day delivery, doorstep delivery, and night-time pickup, to cater to specific market demands. The logistics company will also prioritize the development of three-tiered supply chain products and services, namely Half-Day Delivery for premium warehousing, Next-Day Delivery for smart warehousing, and a cost-effective economy shipping option.
Further to this, the Group presented an interim result on its activities in Spain where Cainiao succeeded in significantly expanding its delivery network. This is a consequence of the acquisition of the Spanish delivery company, EcoScooting, last year, enabling the Alibaba subsidiary to broaden its service coverage nationwide. Currently, the network covers 60% of the Spanish population spanning more than 30 major Spanish cities.

Successful in Spain
“We’ve achieved this rapid development thanks to a combination of local know-how from the EcoScooting team and Cainiao’s smart logistics infrastructure and technologies as we continuously invest in this market,” said William Xiong, Senior Vice President at Cainiao Group, “We are committed to providing to our customers in Spain and across the world with a more sustainable and efficient delivery service.”
Meanwhile, the company offers next-day delivery in 9 major cities, including Madrid, Barcelona, and Valencia as well as two-day delivery service in over 20 Spanish cities. These services are complemented by tailor-made green delivery solutions for low-carbon areas in major cities, using electric scooters or vans.

Heiner Siegmund

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