Pinduoduo targets greater logistics support for merchants, rivalling Alibaba’s Cainiao
- Shanghai-based e-commerce firm plans a range of services that will ensure faster and more efficient product deliveries
Pinduoduo, China’s third largest e-commerce company, plans to establish its own logistics data network to speed up deliveries as it competes with market leaders Alibaba Group Holding and JD.com.
Supported by artificial intelligence (AI) and big data technologies, the new operation will offer services including route planning, automated warehousing, parcel sorting and specific systems to improve fresh produce deliveries, according to Shanghai-based Pinduoduo.
“Before we started to fulfil our own logistics, a bulk of our merchants were using our competitor’s system, so we had no visibility between when the merchant ships the goods and when our users receive the goods,” said David Liu, vice-president of strategy at Pinduoduo, in an interview. He said the company received customer complaints about those deliveries.
Its latest initiative would directly challenge the more established Cainiao Network, Alibaba’s logistics arm that was set up in 2013. Alibaba is the parent company of the South China Morning Post.
Founded by Alibaba and a consortium of Chinese logistics companies, Cainiao does not directly employ drivers but operates a logistics information platform that links to network of contractors, warehouse operators and distribution centres that supports both domestic and international shipments. Orders on Alibaba’s Tmall and Taobao Marketplace platforms use Cainiao’s electronic delivery information system.
