From Nasdaq:

Alibaba’s logistics arm, Cainiao, has launched a “consolidated shipping” service in the United States, decreasing delivery times to only 5 days. This move is expected to attract Chinese customers residing in the U.S. and help Cainiao gain momentum among various Chinese e-commerce companies.

In addition to the U.S., Alibaba’s Cainiao already offers consolidated shipping to Chinese shoppers in Hong Kong, Singapore, and Australia. The company also introduced a new express delivery service and made a $57 million bid to acquire Chinese logistics company Best, thus strengthening its overall logistics services portfolio.

Given the expected growth in the global logistics market and the company’s strong financial performance, the latest U.S. expansion will reinforce Alibaba’s logistics portfolio. Industry experts believe that Alibaba will be well-positioned to compete with Amazon in the logistics market.

As of now, Alibaba Group Holding Limited carries a Zacks Rank #3 (Hold) and is expected to benefit from its expansion in the logistics services market. It recently made an expansion in the U.S. and is expected to compete with Amazon to strengthen its presence in the logistics market. The company also launched an end-to-end supply chain service called “Supply Chain by Amazon”.



Read more: Alibaba’s (BABA) Cainiao Expands Logistics Services in the U.S.