Cainiao Smart Logistics Network, a unit of Alibaba Group Holding (NYSE:BABA), has launched next-day delivery services in Europe as part of its strategy to expand globally.
The service includes a 2 euros ($2.20) option for deliveries in Spain and Portugal. In contrast, a three-day delivery service priced at 3-5 euros is available in other European countries, SCMP cites from the 2024 Smart Global Logistics Summit in Hangzhou.
During the Summit, the company also revealed plans to develop a new batch of global e-commerce logistics hubs to serve e-commerce platforms, brands, and merchants worldwide.
A fleet of aircraft that can transport goods internationally within 72 hours will support Cainiao's global logistics network.
In March, Alibaba Group abandoned its initial public offering plans for its logistics arm, citing strategic and current market considerations. Instead, Alibaba Group proposed integrating Cainiao with core e-commerce operations to regain market share and drive growth.
Alibaba Group stock is down 4% in the last 12 months.
The Chinese e-commerce juggernaut's inclusion in the cross-border Stock Connect program marks a key turnaround opportunity, SCMP cites historical trends.
Hong Kong-listed tech giants like Tencent Holdings (OTC:TCEHY), Meituan (OTC:MPNGF) (OTC:MPNGY), and Xiaomi Corp (OTC:XIACF) (OTC:XIACY) experienced significant stock price increases following their inclusion in the Stock Connect program, SCMP cites from its compiled data.
In the six months after joining, the stocks gained 12%-23%. Over 12 months, Meituan and Xiaomi saw even more significant gains, more than doubling in value.
Price Action: BABA stock is up 0.32% at $85.09 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
