Cainiao Group, the logistics subsidiary of Alibaba Group, has announced a next-day delivery service between mainland China and Hong Kong.

In a statement, Cainiao said that its customers with packages landing on their doorsteps outside of this 48-hour window would also be eligible for up to RMB60 (US$8.30) in compensation per order as Cainiao looks to strengthen its network in the city.

 [Source: Cainiao]

 
James Zhao, vice president and general manager of Cainiao's global supply chain, noted that Hong Kong is an important node in Cainiao's global logistics network, and the company will "speed up localization in the city."

Increased parcel volumes

Over the first six months of this year, the volume of consolidated parcels delivered by Cainiao in Hong Kong grew by more than 20% year-on-year.

Cainiao said it entered the city in 2018 and has developed a self-operated network with 11 distribution centres, over 750 self-pickup points, and cross-border and local truck fleets.

"In Hong Kong and the wider region, speed is the name of the game," the Chinese logistics giant said.

The announcement comes after Cainiao committed to cut cross-border delivery times to within five days in China in partnership with e-commerce marketplace AliExpress. The logistics company also debuted a self-operated premium express brand in China called Cainiao Express.

"The goal is to provide quality and competitive logistics services to our consumers, merchants, platforms, and logistics partners," said Wan Lin, Cainiao CEO.

Alibaba, which holds a 67% equity interest in Cainiao, earlier greenlighted the company's plan to pursue an initial public offering within the next year and a half.