Alibaba’s logistics arm Cainiao launches $76.5m global open tender for partnerships

Source: Alizila.com, the news hub for Alibaba Group

Cainiao Smart Logistics Network, the logistics arm of Chinese e-commerce giant Alibaba Group, announced on Thursday the launch of its 2021 global open tender valued at 500 million yuan ($76.5 million) as the firm attempts to strengthen its global logistics network to support cross-border e-commerce growth.

The global open tender encompasses all key markets including North Asia, Southeast Asia, Europe, Middle East, Australia, New Zealand, and the US. The deadline for tender submissions is December 15, 2020.

“As a digital logistics platform, Cainiao adopts a collaborative approach by integrating existing industry logistics resources and empowers connected partners with an innovative and open data platform which improves efficiency along the entire value chain,” said Cainiao in a statement.

The development represents Cainiao’s latest initiative to build out a global logistics infrastructure, since Alibaba increased its stake in the logistics unit from about 51 per cent to 63 per cent in November 2019 to unfold the firm’s global ambitions.

With Alibaba paying 23.3 billion yuan ($3.6 billion) for the additional 12 per cent stake, Cainiao reached a valuation of around 194.2 billion yuan ($29.7 billion).

The investment helped Cainiao achieve a nearly four-fold valuation increase in less than four years, from about 50 billion yuan ($7.6 billion) when the firm had closed its initial funding round at over 10 billion yuan ($1.5 billion) in March 2016. Its first financing was backed by investors including Singapore’s sovereign wealth fund GIC, Singapore state investor Temasek, Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, and China-based Primavera Capital Group.

Cainiao, founded in May 2013, has developed into a platform of over 3,000 logistics partners and three million courier personnel.

The open tender covers both business-to-consumer (B2C) and business-to-business (B2B) services.

In the B2C area, Cainiao will curate a list of Cainiao-certified third-party logistics (3PL) partners to provide a full suite of end-to-end logistics services for merchants, spanning overseas parcel collection, international line-haul, import customs clearance, and last-mile delivery.

Hangzhou-based Cainiao also plans to select partners for its global fulfilment warehouse network to support overseas warehouse management, which includes storage and inventory management; quality inspection; picking and packing. It also seeks to find partners for its global consolidation warehouse network for consolidation of B2C parcels.

Through the partnership, the firm aims to reinforce resources to “deliver greater stability and efficiency” to support cross-border e-commerce businesses for both Alibaba, which operates platforms like Taobao, Tmall, and Kaola; as well as non-Alibaba merchants.

In the B2B area, Cainiao will strengthen its warehouse and trucking network to support businesses’ import and export needs.

In the statement, the firm said that these overseas warehouses need to be located near ports to facilitate efficient transportation and be able to provide services for pre-stocking, storage, and to serve as a container freight station (CFS).

Partners supporting the trucking network will also have to be well-equipped with resources, such as lorries and container trucks, to handle transportation of goods between warehouses and ports.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.