The unbelievable ambitions of Alibaba

Techcrunch:

Alibaba is getting serious about logistics after it agreed to invest RMB 5.3 billion ($807 million) in order to take majority ownership in subsidiary company Cainiao.

Cainiao was created four years ago alongside eight other backers to bring organization in Chinese logistics, particularly around e-commerce deliveries. The company raised its first outside funding in March 2016 — reportedly RMB 10 billion ($1.54 billion) at a RMB 50 billion ($7.7 billion) valuation — from backers including Temasek Holdings and GIC in Singapore, Malaysia’s Khazanah Nasional and China-based Primavera Capital.

It is currently not profitable, but investors see its close relationship with Alibaba as the ticket to developing a lucrative business. Alibaba said the goal is to enable e-commerce services in China to fulfill customer orders within 24 hours, and those overseas within 72 hours, and Cainiao is a core part of that.

Indeed, Alibaba said it plans to invest over $15 billion in the next five years to develop its global logistics network.

The company is growing over 50% a year and has a market cap of $440 billion, and now they’re soon going to have 24 hour delivery to every person in China in a few years. Wow!

Maybe Spengler’s right about China; after all, here at home the insane seem to be besting the sane.

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