Cainiao Express previously performed Tmall Supermarket's deliveries, but will now focus on services such as half-day and same-day deliveries.
Photo by Kuang Da
By BAI Fan
Alibaba's logistics division Cainiao Network has obtained an express delivery license and is to begin courier services under the name Cainiao Express.
Cainiao Express previously performed Tmall Supermarket's deliveries but has transformed itself into a nationwide express delivery network, focused on the high end of services such as half-day and same-day deliveries.
During today's global smart logistics summit hosted by Cainiao, companies including Adopt a Cow, Tsingtao Beer and Hema signed up with Cainiao Express.
Cainiao began express deliveries six years ago to support Tmall Supermarket and has matured into a nationwide trucking and freight network. This year, Tmall Supermarket began half-day deliveries in Hangzhou.
Cainiao said that Yili, a leading dairy company, has been using Cainiao for its stores on Tmall since last year. As a result, logistics-related complaints have decreased by 30 percent, logistics costs during promotional events have decreased by 30 percent, return rates have been halved, and customer repurchase rates have increased by 10 percent.
Whether the delivery is made to the doorstep or not is also a concern for consumers. To ensure effective doorstep delivery, Cainiao announced three months ago that it would invest 3 billion yuan in Cainiao Stations.
According to the person in charge of Cainiao Station in Beijing, the proportion of doorstep deliveries has been above 90 percent since the beginning of the year.
Other couriers are under pressure. A manager at a competing courier station told Jiemian News that some of his customers have started requesting doorstep delivery, but since headquarters will not fund the service, doorstepping disrupts the original profit and loss balance.
Cainiao also has plans for international deliveries and local express deliveries overseas.
No more than 18 months before an expected IPO, Joe Tsai, a co-founder of Alibaba and the man behind Alibaba’s listing, is back to lead Cainiao. The summit was Tsai’s first public appearance after returning to China.
