Alibaba’s logistics arm Cainiao Network says it has expanded its last mile network in Singapore on September 16.
The expansion means that delivery time for cross border parcels for e-commerce will be shortened.
The move comes ahead of Alibaba’s Double 11 Shopping Festival.
The last mile network, which includes partners such as Singapore Post, BEST Inc., Roadbull, and Park N Parcel, will comprise over 1,600 collection points, 600 couriers, and 500 lockers, islandwide.
Cainiao says its expansion and digitalisation of its last mile network aims to support Singapore’s rapidly growing e-commerce industry that is contributing 200,000 parcels daily and worth US$2.4 billion ($3.27 billion).
The industry is projected to grow at 12-20% annually over the next five years.
“The expansion of last mile network is an organic extension to deliver an end-to-end logistics service that provides greater stability and quality assurance to our customers in Singapore,” says James Zhao, general manager of its global supply chain arm at Cainiao.
“This is also part of our ongoing effort to support the Southeast Asia market by establishing win-win partnerships with local logistics partners. By driving the digital transformation of the entire industry, we are confident that logistics will continue to play an instrumental role in bolstering e-commerce growth in the region and serve as a key building block for the digital economy,” Zhao adds.
As at 12.45pm, shares in Alibaba are trading HK$3.60 higher, or 1.4% up, at HK$271 ($47.59).
