Alibaba investing to boost logistics capacity

E-commerce giant Alibaba Group Holding Ltd and its logistics arm Cainiao Network Technology Co Ltd are leading a $1.38 billion investment in Chinese courier ZTO Express Inc, to further boost the group's logistics capability for its New Retail concept in the highly competitive domestic market.

The deal, expected to close in early June, is a strategic investment for an approximate 10 percent equity stake in United States-listed ZTO. Other investors involved in the deal were not specified in the announcement.

Alibaba said Cainiao and ZTO will deepen their logistics cooperation amid the growth of New Retail, a business model envisioned by Jack Ma, Alibaba's founder and chairman. New Retail aims to seamlessly merge offline and online commerce and logistics via advanced technologies and data analytics.