Update | Cainiao, SF Express in standoff over data, causing confusion among Chinese online shoppers
Parcel delivery and online shopping giants at issue over open access to data. SF Express shares fell as much as 3.7 to a two-week low at one point Friday, wiping 8.28b yuan of its value
A standoff has broken out between the logistics arm of the world’s largest online shop and one of its major couriers, in a tiff that’s thrown a cloud over parcel deliveries in China’s 6.2 trillion yuan (US$910 billion) online retail market.
Cainiao, the affiliate of Alibaba Group Holdings that organises the logistics of parcels bought through the Taobao and Tmall platforms, is going head-to-head with SF Holding Co, whose SF Express is among dozens of couriers that deliver those parcels.
At issue is access to data about the merchants that sell their products, and the shoppers that placed those orders. SF Express claimed in a Shenzhen stock exchange filing that Cainiao had removed it as a shipping option, and blocked access to data. Cainiao – controlled by Alibaba, which owns the South China Morning Post – responded by saying it was the courier that first walled off vital information.
The tussle is a potential flash point for a nation that is increasingly dependent on online commerce for everything from clothing to electronics to even foodstuff and fresh produce.
Xiong Yuan, a Beijing office worker, said the standoff between Cainiao and SF Express is going to hurt the convenience of online shopping, which she has been enjoying for years.