China

China’s e-commerce giant Alibaba to acquire stake in SingPost

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China’s e-commerce giant Alibaba to acquire stake in SingPost

China’s e-commerce giant Alibaba is investing S$312.5m ($249m) to acquire 30% stake in Singapore Post (SingPost), the city-state's major postal service.

SingPost

The two companies also signed a memorandum of understanding (MOU) to discuss and form a joint venture (JV) to create an international e-commerce logistics business.

The new collaboration will provide improved access to SingPost's international logistics capabilities, infrastructure and delivery networks, along with end-to-end solutions to Alibaba Group customers and merchants.

SingPost chairman Lim Ho Kee said this strategic investment by Alibaba is a significant milestone in the company's transformation journey into the region and is an affirmation of its long-standing strategy in e-commerce logistics as part of the growth trajectory.

"SingPost will benefit from Alibaba's expertise in e-commerce, technology and business volumes. We see considerable strategic advantages, such as the creation of new relationships and opportunities for strategic cooperation with the Alibaba Group, all of which are expected to increase the Company's growth and development pace as it pursues regional opportunities," Kee noted.

Speaking about the development, Alibaba Group Chief Operating Officer Daniel Zhang said, "Through this collaboration, we hope to create concrete benefits for our overseas buyers and sellers by enhancing the user experience and providing greater access to a suite of international e-commerce logistics solutions and products."

The collaboration aims to achieve full regional value chain of e- commerce logistics including warehousing, last mile delivery, linehaul, customs clearance, parcel collection, consolidation and order fu lfillment; and will provide Alibaba Group access to SingPost Group's international logistics capabilities, infrastructure, and delivery networks including potential regional roll-out of POPStations.

Image: The new collaboration will provide improved access to SingPost's international logistics capabilities, infrastructure and delivery networks. Photo: courtesy of Singapore Post Limited.

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