Cainiao, the logistics arm of Alibaba, saw improved profits in the last quarter of 2023, primarily driven by revenue from cross-border fulfilment solutions.
The company said its revenue was up 24% year-over-year to RMB28,476 million (US$4,011 million) with adjusted EBITA of RMB961 million (US$135 million).
In the announcement, Cainiao noted that for cross-border logistics, it further expanded coverage for its premium 5-day delivery service to 10 countries, with the addition of two new countries this quarter.
Order volume for the premium 5-day delivery service achieved robust triple-digit quarter-over-quarter growth.
Additionally, Cainiao has upgraded its logistics solutions for key countries and markets across North America and Latin America.
In North America, Cainiao launched parcel forwarding services in the United States, offering as fast as 5-day delivery via air freight and 15-day delivery via sea freight. The services also support one-click consolidation of parcels across its entire network.
In Latin America, Cainiao launched the first China-Mexico express cargo flight route, allowing consumers in Mexico to receive packages from China in as fast as 10 days.
Meanwhile, Cainiao said it is rapidly expanding its local logistics infrastructure overseas.
In Spain, for instance, Cainiao's self-operated local express network now covers 47 key regions, providing a wide range of logistics services, including cross-border small-parcels delivery, local warehouse dispatch, last-mile delivery, and intra-city delivery, for local Spanish and cross-border Chinese merchants.
Recently, Cainiao also announced partnerships with various brands across various industries, from chain restaurants, liquor, electric vehicles and automotive parts, and photovoltaics, to home decor — with notable partnerships including McDonald's China, Maotai Distillery Logistics, Dongfeng Honda Automobile, Tongwei, and LINSY, among others.
In Hong Kong, Cainiao launched the "One-Click Pickup" service through its Cainiao App, which is available at over 130 Cainiao self-pickup points across the city (as of the end of January 2024).
Cainiao's global smart logistic network covers 200 countries and regions.
Cainiao is also able to provide end-to-end visibility over parcel journeys from China to consumers in 179 countries and regions.
By leveraging big data, real-time predictions, and online decision-making optimization algorithms, Cainiao said its "cross-border parcel fulfilment system" now covers 53 countries and regions globally.
