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ZTO buys 15% stake in Cainiao's last-mile delivery business

Published 07 June 2018

ZTO Express (Cayman) has made a strategic investment of approximately US$168m for an approximately 15% stake in Cainiao Post, Cainiao Network's network of last-mile delivery stations, in order to jointly ramp up last-mile service capabilities and provide diversified solutions that enhance efficiency and meet the growing demand from New Retail.

ZTO founder, chairman and CEO Meisong Lai said: "ZTO has made significant progress over the past few years in developing its last-mile delivery products and services. We have always had a deep relationship with Cainiao, which is empowering express delivery companies and growing alongside such companies.

“ This investment by ZTO in conjunction with other major express delivery companies in Cainiao Post will allow us to offer better services to customers by enhancing resource allocation and strengthening cooperation across our collective last-mile delivery networks."

Last-mile delivery services are becoming increasingly competitive as customers' demand for personalized pickup and delivery services grows alongside the number of daily parcel volume. Cainiao Post offers customers a wide variety of services to choose from, including expanded options for scheduled deliveries, smart lockers, and delivery outlet pickups.

ZTO Express is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China.

The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

Source: Company Press Release