Last-minute deliveries get a boost after cash investment

Cainiao Network has made a US$290 million cash investment in Hangzhou-headquartered crowdsourcing courier platform Dianwoda to strengthen its capability in last-minute delivery.

Cainiao Network will become Dianwoda's controlling shareholder and will also merge its existing outsourcing businesses with Dianwoda.

The logistics service platform seeks to strengthen synergies between the delivery platform, which specializes in short-distance delivery, and its own online retail operations and on-demand delivery affiliate Ele.me.

Chairman Jack Ma reiterated earlier this year that the company is committed to investing hundreds of billions of yuan to set up a smart logistics network.

It also unveiled plans to build logistics hubs in major cities including Kuala Lumpur, Dubai, Moscow and Liège in Belgium that will be part of a global delivery network allowing merchandise to be delivered anywhere within 72 hours.

Dianwoda currently connects with 1 million vendors and 100 million consumers through more than 3 million courier staff in 300 domestic cities. It's also poised to become an integral part of Cianiao's smart logistics network.

Alibaba's biggest rival, JD.com, has also been stepping up upgrading of its delivery and logistics network and has worked with Shanghai-headquartered crowdsourcing service provider Dada. 

Diaowoda's previous investors include Gobi Partners and SAIF Partners.