Alibaba set for another record Singles’ Day as it ups stake in Cainiao
11 / 11 / 2019
By Damian Brett
Singles' Day sales reach RMB100bn in one minute
Alibaba Group Holdings has increased its stake in logistics business Cainiao to around 63% with a $3.3bn investment ahead of what is expected to be another record Singles’ Day.
Other existing shareholders also participated in the fundraising, demonstrating “strong support for Cainiao’s long term outlook”, Alibaba said.
The finance will allow the logistics company to continue its investment in technologies and logistics infrastructure services to “strengthen its smart logistics network and enable innovations in business models, services and technological capabilities for the entire industry”.
Daniel Zhang, Alibaba group executive chairman and chief executive, said: “Logistics is a key pillar of the Alibaba business operating system. It allows us to offer the best service to customers and to effectively advance our new retail strategy.
“Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world. We are committed to supporting its ongoing development, to realizing greater synergies throughout the entire Alibaba Economy and accelerating digitisation of the logistics industry.”
Meanwhile, Singles’ Day – taking place today – is shaping up to be another record. In the first minute and eight seconds of the retail event, sales settled through Alipay – Alibaba’s online payment system – reached $1bn and in the first hour, sales through Alipay reached $12bn.
Last year, Singles’ Day sales reached a record of $30.8bn. The BBC reports that by late afternoon (local time) sales this year had already reached $30bn.
Last week, the company announced that it would launch freighter services between China and Russia.