Date
17 August 2017
A commerce ministry official says Jack Ma should spend more time untangling e-commerce financing and less time building warehouses. Photo: Bloomberg
A commerce ministry official says Jack Ma should spend more time untangling e-commerce financing and less time building warehouses. Photo: Bloomberg

Official takes aim at Jack Ma for Cainiao ‘diversion’

Alibaba chieftan Jack Ma has been sidetracked in his logistics ambitions, giving in to the temptation to build warehouses rather than making the company’s Cainiao unit a smart platform for e-commerce financing, according to a commerce ministry official. 

Nie Linhai, deputy inspector of the ministry’s e-commerce and information department, told a an e-commerce forum in Qingdao Friday that Ma could make a great contribution if Cainiao Network Technology Co., Ltd. realized its original goal of untangling supply chain financing for e-commerce firms.

Instead, Nie said, the venture is aggressively setting up logistics warehouses thanks to local government offers of cheap land.

Cainiao was set up in May, 2013 by Alibaba, China Post Group, Fosun Group and various other companies. The goal was to make the Shenzhen-based company a backbone for a smart logistics network to benefit all e-commerce companies.

The ministry praised the company as a pioneer of a new model combining e-commerce with logistics.

But Cainiao has been buying up land rights in a dozen cities and plans to spend 100 billion yuan (US$16.11 billion) first and another 200 billion yuan later building logistics hubs to have one-day delivery to every part of the country.

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TL/SK

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