Date
25 May 2017
Rival e-commerce firm JD.com runs its own delivery network, which allows it better control over its service, but Alibaba doesn't. Photo: Bloomberg
Rival e-commerce firm JD.com runs its own delivery network, which allows it better control over its service, but Alibaba doesn't. Photo: Bloomberg

Alibaba to expand next-day delivery services

Alibaba Group Holding Ltd. is pushing to bring accelerated delivery to more Chinese cities amid rising customer expectations, The Wall Street Journal reported.

Meanwhile the e-commerce giant is pressing its logistics partners to crack down on practices that hurt its reputation, the report said.

Alibaba’s Cainiao logistics affiliate hopes to offer next-day delivery in 50 cities by the end of this year, up from 34 cities now, the newspaper quoted Judy Tong, president of Cainiao, as saying.

In a presentation to Cainiao’s logistics and delivery partners Thursday, she urged the logistics firms it works with to avoid a fierce price war that she said has hurt service standards.

Competition is rising among China’s e-commerce players to provide better delivery services.

Alibaba’s main e-commerce rival, JD.com Inc., said last year it provided same-day delivery in 43 cities and next-day delivery in a further 256 cities in China.

Unlike JD.com, which operates its own logistics services, Alibaba relies on third-party providers.

Alibaba’s approach is intended to keep costs down but also gives it less control over the services that bring packages to Chinese consumers.

Tong told the newspaper Cainiao would continue to crack down on delivery companies that help merchants that generate fake orders to artificially inflate their sales volume.

The delivery firms go as far as to deliver empty boxes to help the merchants with whom they are in cahoots.

Last month, Cainiao terminated the services of 11 courier firms either on suspicion of being involved in fake transactions or for failing to share data with the network’s platform.

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