Cainiao Group reported revenue expansion in the first quarter of 2023, driven by growth in e-commerce fulfilment and a broader array of logistics services that supported international commerce.

The logistics arm of Alibaba Group Holding Limited saw quarterly revenue grow 34% year-over-year to RMB23.16 billion (US$3.2 billion).

This is primarily driven by the volume increase of international fulfilment solution services (mainly serving AliExpress) and China domestic consumer logistics services.

Daniel Zhang, chairman and chief executive of Alibaba, made the quarterly announcement along with Alibaba's first-quarter performance.

Cainiao said the adjusted EBITA of the quarter was RMB 877 million (US$11.9 million) due to the continued focus on quality of operation and lower transportation costs as international air cargo prices came down.

"Looking ahead, Cainiao will continue to invest in building logistics networks for cross-border and domestic parcels, leveraging Alibaba's multiple digital commerce use cases to expand its network effect," Zhang said.

The Alibaba chief noted that Cainiao would also share part of the savings from its operating efficiency improvement and transportation cost reduction with its customers through price strategy adjustments and pursue higher economies of scale on a larger revenue base.