Alibaba Group, China’s leading e-commerce company, is planning to build a massive logistics network across the country because it is dissatisfied with the quality of local delivery services and wants to stay ahead of rising competition in its fast-growing home market.
The group is to set up distribution centres in 52 Chinese cities over the coming two years, Jack Ma, founder and chairman, told management in recent internal strategy meetings, according to sources at the company.
The logistics service, details of which have not been revealed, is designed for users of Taobao, an unlisted group affiliate which has a stranglehold on China’s consumer e-commerce market.