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Cainiao’s total Q2 FY23 revenue before inter-segment elimination reaches US$ 2.57 billion following business expansion
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Last-mile capabilities expansion encompasses 170,000 Cainiao Post stations, doorstep deliveries and value-added services
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Overseas distribution centers increased to 12 with a focus on last-mile deliveries and smart lockers to optimize and localize services in destination countries
Aggressive expansion lifted Cainiao Network’s revenue 26% year on year to RMB18.28 billion (US$2.57 billion) in its financial year 2023 second quarter to September 30, 2022, before inter-segment elimination. The company said 73% of these sales were generated from external customers.
The company, a logistics unit of the Alibaba Group, said in a press release on November 17 that Cainiao has strengthened its last-mile logistics capabilities with the expansion of Cainiao Post network to encompass over 170,000 stations, more than 20% year-over-year growth.
Cainiao Post stations located in urban residential communities grew to more than 116,000, of which over 80,000 offer doorstep parcel delivery services.
Cainiao has reinforced its logistics and supply chain management capabilities to provide value-added services in B2B and B2C areas, such as furniture assembly, bulky goods delivery, cold chain management, fast-moving consumer goods, and beauty products.
This quarter, Cainiao partnered with Shiseido’s subsidiary, Aupres, to officially launch a central distribution center in North China.
The partnership covers warehouse management, central distribution center, as well as end-to-end logistics and supply chain management to support their physical stores nationwide and eCommerce channels.
This move has helped Aupres to consolidate and streamline its B2B and B2C businesses in China.
To address the pain point of furniture assembly, Cainiao has established and strengthened its own team to provide same-day delivery and assembly services spanning 300 Chinese cities and suburbs.
Cainiao has set up its own warehouses and consolidation/distribution centers in key manufacturing hubs, along with regular designated delivery slots, to further safeguard service stability for merchants and customers.
To reinforce its global logistics network, Cainiao has expanded the number of overseas distribution centers to 12, with a focus on last-mile deliveries and smart lockers to optimize and localize its services in destination countries.
This quarter, Cainiao has also accelerated globalization initiatives by rolling out of self-operated smart logistics facilities in 16 countries and regions.
Early this year, Cainaio launched its economy sea freight route to connect Ningbo, China to Bangkok, Thailand, amid surging e-commerce demand from shoppers in the region.
On the environmental, social and governance front, Cainiao has continued its efforts in green logistics and emergency logistics. It implemented Internet of Things (IoT) technology in over 1,000 Cainiao Post stations to support recycling initiatives, along with the introduction of a carbon billing system.
Cainiao has also partnered with 28 organizations on emergency logistics and rolled out digitalized transportation system to improve overall efficiency during emergencies.
