Chinese e-commerce giant Alibaba announced today that it will invest S$312.5 million ($249 million) into Singapore’s national postal service provider SingPost, taking a 10.35 percent stake after the completion of the deal.
Both companies also signed an agreement that would pave the way for discussions on setting up a joint venture in terms of international e-commerce logistics in the future, which is a strong indication of Alibaba’s overseas expansion plans. Daniel Zhang, Alibaba’s chief operating officer, said in a statement that the company hopes to provide “greater access to a suite of international e-commerce logistics solutions and products.”
The cooperation will give Alibaba access to SingPost’s international logistics capabilities, including warehousing, last mile delivery, parcel collection and order fulfillment among other things. It will also open up SingPost’s infrastructure and delivery networks to the e-commerce giant. This will help to create an end-to-end process for customers and merchants on Alibaba’s various shopping platforms.
Image Credit: Peter Parks/AFP/Getty Images
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