Ant Financial to help small logistics firms

Alibaba’s financial affiliate Ant Financial yesterday said it would provide 200 million yuan (US$30.5 million) of subsidies to small and medium-sized logistics firms for them to adopt digital services and enhance their marketing capabilities.

Information technology has been a drawback for smaller logistics firms which have limited budget to invest in digital infrastructure.

Ant Financial hopes to draw more third-party service providers and business collaborators to drive adoption of innovative technology in the courier industry, said Zou Liang, vice president of Ant Financial’s payment business division.

Logistics spending took up 14.8 percent of China’s total gross domestic product last year amid booming demand for courier services from online vendors.

Ant Financial will also provide courier companies with a credit reference service. The company’s affiliated MYbank intends to give loans of up to 500,000 yuan to supply chain services.