Alibaba to Invest in Express Delivery Company
China Business News, 3/18/10
On March 29, Chinese B2B e-commerce company Alibaba.com (1688.HK) will sign an agreement to invest in Stars Express, a privately owned express delivery company. Stars Express representative Chen Ping said that the company is already discussing overall strategy with Alibaba, and that the agreement with Alibaba will include e-commerce cooperation in addition to exchange of equity.
According to a senior executive from another privately owned delivery company, Alibaba has been in contact with other companies, including other delivery companies, to discuss possible investment. Because private delivery companies with relatively well-developed nationwide networks had higher asking prices, Alibaba chose instead to invest in Stars Express, which was established last year and whose network, through its alliance partners, can provide coverage to more than 2,600 cities nationwide.
Executives from several private delivery companies have said that both HNA Group and Fosun Group are in discussions for potential investment in Shanghai-based private delivery companies with nationwide networks, including STO Express, Yuantong Express, Huitong Express, and TTK Express.
Keywords: Stars Express M&A B2B e-commerce Internet Alibaba 1688.HK Chen Ping logistics
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