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Alibaba has invested $ 966 million into YTO Express, a company that is one of China’s largest logistics service providers. Thanks to the financial injection, Alibaba’s long-term partner YTO is getting ready for entering the international market.

Chinese e-commerce giant Alibaba Group Holding has more than doubled its stake in the major Chinese courier from 10.5 per cent to 22.5 per cent, with this move.

The companies will collaborate in four main areas:

  • express deliveries, 
  • air cargo, 
  • building a global logistics network supply chain, 
  • digital technologies

The e-commerce boom has brought about a revolution in the logistics market over the last decade in China, contributing to the transformation of small courier companies into international corporations. One of them is YTO Express, which has been operating on the Chinese market for 20 years, and thanks to Alibaba’s investment of nearly a billion dollars, it can prepare for international expansion

YTO is one of the top 5 logistics operators in China with a market share of 14 percent. The company’s competitors – STO, ZTO, Best Express and Yunda – also cooperate with Alibaba. The e-commerce website, unlike Amazon, prefers to rely on external services and does not plan to build its own logistics network.

Photo: FlickR

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