In order to boost the delivery of products purchased online, Alibaba launches a new project, which being backed by $16.3 billion funding today in the Shenzhen, China, reports Sina Tech. Alibaba has joined hands with industry partners to set up a company under the project, name as China Smart Logistics Network.
The company with which Alibaba teamed up includes China Yintai Holdings, Fosun and Forchn Holdings, as well as major delivery companies named “Rookie Network”. Alibaba founder and chairman Jack Ma will be the chairman of Rookie while China Yintai chairman Shen Guojun will be the company’s CEO.
The new company is aiming to handle online shopping daily transactions of worth of an average 30 billion yuan ($4.9 billion) within 5 to 8 years while Reuters reports too that the network will allow delivery across China within 24 hours.
“This is consistent with what we’ve said in the past that logistics is a key industry bottleneck for e-commerce growth in China and that everyone involved in this sector needs to work together to drive rapid development,” an Alibaba spokeswoman said in an email to Reuters.