Alibaba invests $3 billion in strengthening its logistics play - Business Insider

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Alibaba's investment in Cainiao is part of a growing trend of e-commerce giants bringing logistics operations in-house to bolster their services:

in Jiangsu Xinning Modern Logistics in an effort to build up its cargo matching system.

Legacy logistics providers, like DHL or UPS, stand to lose out on a growing source of revenue as e-commerce giants become less dependent on their services. Currently, online shopping accounts for nearly 15% of total retail sales globally and is expected to grow to 22% by 2023, As e-commerce companies increasingly are able to process and ship the growing number of orders they receive, legacy delivery partners will find themselves with a smaller share of revenue.

To counter the increasing independence of large e-commerce, legacy logistics providers need to partner with smaller platforms to ensure access to a steady flow of e-commerce orders. For example, last month UPS with online shipping platform Shippo to allow Shippo customers to more easily access UPS services and boost the appeal of UPS' services. Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >>

 

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