Alibaba to build 100 billion yuan logistics network

Alibaba, the mainland's largest e-commerce firm, said it would lead a group of mainland investors, including private equity firms and major express delivery firms, in investing 100 billion yuan (HK$124.6 billion) in the first phase of a logistics network.

Jack Ma Yun, who announced last week that he will step down as Alibaba's chief executive in May, will be chairman of the logistics venture.

The plan is to build, in the next eight to 10 years, a network that will allow products to be delivered to any corner of the mainland within 24 hours.

Li Zhi, an analyst at market research firm Analysys International, said more details were needed before one could tell if the objectives could be reached.

"I think Alibaba wants to improve the whole environment of the e-commerce world and help enterprises working in this business do better," Li said.

Alibaba spokeswoman Florence Shih said the firm was spearheading the project in co-operation with industry partners with a common goal of enhancing the mainland's existing logistics network, "whether it be on the IT or physical delivery and warehousing levels".