Alibaba upgrade Cainiao logistics network with smart vehicles

Tinuku ~ The e-commerce giant Alibaba is preparing 1 million smart vehicles to improve logistics efficiency. The company is strengthening the Cainiao network courier as Alibaba's logistics arm with artificial intelligent technology in an effort to tackle the volume of shipments expected to reach 1 billion daily over the next decade.

Tinuku Alibaba upgrade Cainiao logistics network with smart vehicles

Alibaba Group Holding Limited (NYSE: BABA) is using Cainiao logistics forces along with other car companies including SAIC Motor Corp and Dongfeng Motor Corp to optimize delivery routes based on advanced messenger data and algorithms. In 2016 the number of packet shipments in China is predicted to be around 31.3 billion.

New intelligent vehicles have been tested in Shenzhen and Chengdu as an effort to reduce mileage and air travel rates. The company hopes to save 10 billion yuan (US$1.4 billion) annually after all smart vehicles enter the service network for decades to come.

Smart logistics initiative is an upgrade to drive the revolution of new logistics systems by optimizing efficiency. Logistics in China requires technology investments to cope with a 10-fold increase in shipping volumes.

"Smart logistics is the data flow. In the next 5 to 8 years the number of packages in China jumps to 1 billion per day as a big challenge for any logistics company," said Jack Ma, Founder of Alibaba Group.

"The only solution is to invest in cutting-edge technology and cultivate young talent, and we all need to work collaboratively," Ma said.

Cainiao said it will operate the largest retail consumer database in the world. Alibaba until March 2017 put 81 percent of all goods sold through the Cainiao network or up from 60 percent in the previous fiscal year.

A few days ago Alibaba collaborated with J&T Express to establish J&T Alibaba as a delivery door to and from Indonesia. While other Chinese giants are developing drones for packet shipments of up to one ton.