The group is reported to increase its ownership stake in YTO Express, a Chinese courier firm.
Looks to consolidate dominance in the global express delivery market
According to a report by Reuters, Alibaba is currently negotiating with YTO Express ownership, as the former looks to consolidate its dominance in the global express delivery market.
Alibaba currently owns a 10% stake YTO. The Chinese courier was one of the earliest to be backed by Alibaba and its logistics service, Cainaio, which provides software and shares data with warehouses, carriers and logistics firms to deliver packages to shoppers on Tmall and Taobao.
Alibaba is looking to buy an additional stake of up to 30%. With a market value of US$7 bn, an additional 30% would cost Alibaba some US$306 m.
The ecommerce giant already owns a close to 15% stake in express delivery firm STO Express Co LT, which cost US$680 m. Alibaba plans to take an extra nearly 32% stake in the next few years.
In addition to STO and YTO, Alibaba has stakes in large couriers ZTO Express, Yunda Holding Co and Best Inc.