If Alibaba finally completes the shareholding as planned, it will indirectly hold 14.65% shares of Shen Tong Express. The analysts of China Merchants Securities Exchange and Operations pointed out that after Alibaba plans to invest 4.66 billion yuan, it will be optimistic about the future revision of Shen Tong Express's capacity expansion.
Following the cooperation with YTO Express, ZTO Express and Hui Tong Express (now called Best Express), Ali has invested in Shen Tong Express to further expand the layout of the logistics field. According to industry data, the four express companies that Ali shares in the third quarter of 2018 had a turnover of 22.4 billion yuan, which is close to 22.8 billion yuan of SF Express. Competition in the logistics industry will become more motivating in the future.
In addition to new retail, logistics has become the most systematic investment area in Ali. For its continuous and comprehensive investment in large logistics, Ali said that this is an important progress in accelerating the construction of an intelligent logistics network extending in all directions. We are taking a step closer to the goal of 24 hours a day and 72 hours globally. Earlier, Ali has invested in a number of courier companies. Wind statistics show that Ali currently holds 27.79% of the listed company Best Group, ranking first largest shareholder. In 2015, Ali Group teamed up with Yunfeng Fund to invest in YTO Express, and as of January 4, 2019, Ali Ventures and Yunfeng Fund holds a total of 17.02% equity of YTO Express. In May 2018, Ali and ZTO Express announced a strategic investment agreement. Ali and Cainiao Network Technology will invest 1.38 billion US dollars in ZTO Express, holding shares approximately 10%.
Ali said that the logistics industry is an important infrastructure for economic development. Ali invests in STO Express, intending to take over the whole system of express delivery company. One of the reasons is that Ali see the profitability of these companies, and the other is to achieve efficiency and reduce the cost increase caused by the homogenization competition within the system by integrating them into their own logistics platform. Ali hopes that through the joint efforts of all parties, the logistics cost will be reduced from the current GDP ratio of 16% to 5%, far lower than the developed countries, thereby improving the efficiency of the entire manufacturing industry. Continuously enriching and enhancing the ecosystem of the logistics industry and improving the intelligence, technical and service capabilities of the logistics industry. Of course, Ali's ambitions in the logistics industry can not be ignored. With Ali's shareholding in STO Express, the future development of SF Express in the express delivery industry will inevitably lead to "worry." However, SF Express has already begun to differentiate its competition with these express delivery companies. In the short term, Ali seems to be hard to squeeze SF's market share.
In addition, STO Express said that after the completion of the transaction, the company will further explore cooperation with Ali in the fields of logistics technology, express delivery, and new retail logistics. Industry analysts predict that the shareholding express companies is just the tip of the iceberg. Ali and Cainiao Network Technology will invest more resources in data technology research and development, smart warehousing and distribution, global logistics hubs and industry logistics solutions for different categories.