Alibaba's Cainiao invests in digital delivery tech

Alibaba's logistics affiliate Cainiao Network has made a strategic investment in Internet of Things technology provider Shenzhen Yiliu Technology as it seeks digital means to connect delivery networks and transportation vehicles.

Following the strategic investment, Cainiao and Yiliu Technology will work together to help trucks and logistics companies to optimize delivery routes and seek to move towards a digitized supply chain.

"Helping logistics companies to push forward the transformation towards digitalization has always been a priority for Cainiao Network," said Cainiao Network president Wan Lin. "Yiliu Technology will allow us access to better technology research and application capabilities."

China has more than 13 million cargo trucks, and transportation vehicles are scattered with most logistics company operating on a small scale without proper digital tools to track their operation status.

Yiliu Technology currently connects 1.4 million transportation vehicles and more than 1.5 million truck drivers and is expected to share its smart dispatch system with Cainiao's existing delivery network.