Alibaba Fully Acquires Cainiao

On February 27, 2025, Cainiao, the logistics arm of Alibaba Group, announced in an internal email that Alibaba had acquired all remaining shares from Cainiao’s minority shareholders at a price of $0.62 per share, with the total transaction valued up to $3.75 billion. Concurrently, Alibaba initiated a comprehensive exit plan for employee-held stock incentives, allowing employees to cash out their options. ​

This acquisition aligns with organizational changes initiated in January 2025, where Cainiao consolidated its Express, CES Platform, and Overseas Regional Product Technology teams to form a dedicated Global Express Product Technology team, enhancing the development of its overseas COE system. These structural adjustments and capital investments aim to bolster Cainiao’s integration with Alibaba’s core e-commerce and cloud computing infrastructures, reflecting a strategic shift from an independent platform to a more integrated business unit within Alibaba.

Domestically, Cainiao has transitioned from a fourth-party logistics platform to establishing its own delivery network, launching services like Cainiao Express and expanding its reach into lower-tier markets through initiatives such as Cainiao Post stations. This evolution mirrors Alibaba’s efforts to maintain its competitive edge against emerging e-commerce platforms like Pinduoduo and Douyin by enhancing logistics efficiency and customer satisfaction.

Internationally, Cainiao’s growth has been closely tied to Alibaba’s global e-commerce platforms, notably AliExpress. Since September 2023, Cainiao, in collaboration with AliExpress, introduced the “Global 5-Day Delivery” service, accelerating the establishment of international logistics infrastructure, including distribution centers in key U.S. locations such as Los Angeles, Chicago, Miami, and New York. This expansion underscores Cainiao’s commitment to supporting Alibaba’s international business objectives by enhancing cross-border logistics capabilities.

The buyout offers liquidity to minority shareholders and employees, though at a valuation of approximately $10.3 billion, which is lower than previous estimates. This move signifies Alibaba’s intent to fully integrate logistics operations, potentially impacting the dynamics with traditional logistics partners. For employees, the transition from stock options to cash incentives may affect long-term engagement strategies, reflecting broader shifts in the company’s structural and strategic orientation. ​

In summary, Alibaba’s complete acquisition of Cainiao represents a strategic consolidation aimed at strengthening its e-commerce and logistics integration, both domestically and internationally. This move reflects Alibaba’s adaptive strategies in response to evolving market dynamics and competitive pressures.

Source: QQ News, Sina