Asian online retailer Alibaba has taken a controlling stake in China’s Cainiao Smart Logistics. It has increased its investment by 5.3 billion yuan ( $807 million), raising its stake in the company from 47 to 51% and giving it four out of seven seats on the logistics company’s board.
While Cainiao has struggled for profitability in its four-year existence, Alobaba sees the investment as key to its plans to develop 24-hour delivery service across China.
Alibaba added that the move was part of a plan to invest a further 100 billion yuan (about $15.billion) in its global logistics network over the next five years.
