Saturday, January 14, 2017 7:32:52 AM
Zacks Equity Research/January 13, 2017
Click For Article
Chinese e-commerce giant Alibaba Group Holding Limited BABA is set to bolster its foothold in the logistics space.
In its latest push into logistics, the Chinese e-commerce group reportedly has plans to set up a logistics centre in Bulgaria, Xinhua for timely delivery of goods in Europe. Alibaba also plans to offer Bulgarian food and commodities through its online platform.
Per the Chinese news agency report, representatives of Alibaba Group along with GS-Solar Company and GoldPoly Group had met the Bulgarian prime minister – Boyko Borissov – to explore the various investment opportunities in the country.
The government said, “Alibaba Group's ideas for investments are linked to setting up a logistics center to back up their operations in Europe.”
In the last one year, the stock has outperformed the Zacks Internet-Commerce industry. It has returned 37.91% compared with the industry’s return of 31.81%. The stock jumped 2.16% in yesterday’s trading.
Alibaba’s Ongoing Efforts in the Logistics
The move underscores Alibaba’s growing interest in the global logistics business. The company has been exploring this space with investments in couriers and warehouses in recent years.
It has also opened its own logistics service known as Alibaba Logistics. This service assists Chinese brands and merchants with the transportation of goods around the world after they have been sold on one of Alibaba's marketplace sites, such as Taobao or Tmall.
The company has also started leasing containers on ships, allowing Alibaba Logistics to facilitate first-mile shipping for third-party merchants on its marketplace.
Just last week, Alibaba sealed a partnership with Maersk, a unit of Denmark's A.P. Moller-Maersk and the world’s biggest container shipping line, to offer online reservation of space on the latter’s vessels. The service eliminates freight forwarders from the booking process and limits their services to haulage.
The company is leaving no stone unturned to extend its e-commerce reach to mobile, video and distribution business with its eyes now set on China ships.
Our Take
Timeliness has become one of the most important factors in the e-commerce space. As competition intensifies, Alibaba needs to up its game. With the integration of its own logistics service platforms, Alibaba could build a solid logistics platform for small and medium-sized Chinese businesses.
Blessings to All
TRUTH
I've never claimed to have all the answers but feel i'm beginning to corner the market in questions worthy of them.
Recent BABA News
- Alibaba.com Unveils Affordable, Customizable Logistics Solutions for U.S. SMEs • PR Newswire (US) • 04/17/2024 02:00:00 PM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Boeing Down in Pre-Market Due to CEO Developments and Denver Incident; MicroStrategy Surges 11% with BTC Spike, and More • IH Market News • 04/08/2024 11:17:49 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:35:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (Canada) • 03/27/2024 02:16:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:16:00 PM
- Alibaba Group Cainiao IPO Update and Share Purchase Offer Conference Call • Business Wire • 03/26/2024 10:40:00 AM
- Crypto: AIOZ Network Partners with Alibaba Cloud, Google Integrates ENS Domain Balances, and Key Updates • IH Market News • 03/22/2024 05:32:29 PM
- FedEx Soars 13% with Profits Above Forecasts, Nike Hit by China Slowdown, and Latest News • IH Market News • 03/22/2024 01:07:53 PM
- Alibaba.com Witnesses Notable Increase in U.S.-Based SME Buyers During Its Annual March Expo • PR Newswire (US) • 03/21/2024 02:00:00 PM
- Apple Pre-Market Drop Due to Antitrust Threats, Surprising Profit Boosts Micron Shares, and Latest Market Updates • IH Market News • 03/21/2024 11:17:26 AM
- Alibaba.com Records Strong Growth in the Number of UK SME Buyers at This Year's March Expo • PR Newswire (US) • 03/21/2024 09:30:00 AM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
- AliExpress Levels Up Experience for U.S. Customers with Updated Shopping Guarantees and a Redesigned Mobile App • PR Newswire (US) • 03/18/2024 02:49:00 PM
- Apple & Google in Talks for Gemini AI on iPhone, Nvidia’s GTC Conference Today, and Latest News • IH Market News • 03/18/2024 11:10:46 AM
- Adobe Stock Drops Following Below-Estimate Projections, Cardlytics Surges with Unexpected Profit, and More News • IH Market News • 03/15/2024 11:30:55 AM
- Sam Altman Rejoins OpenAI Board; Coinbase, MicroStrategy Surge Pre-Market Amidst Bitcoin’s Latest Milestone • IH Market News • 03/11/2024 10:39:03 AM
- CNOOC Oil Field Discovery in South China Sea, Grifols Surges 18% After KPMG Approval, and Latest News • IH Market News • 03/08/2024 11:19:59 AM
- Alibaba Releases Report on Cross-Border Trade's Positive Impact on the U.S. Economy • PR Newswire (US) • 03/06/2024 11:00:00 AM
- Alibaba.com's Annual March Expo Highlights Small Business Sourcing Trends and Rolls Out More Guaranteed Services • PR Newswire (US) • 02/29/2024 03:29:00 PM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:07:00 AM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:01:00 AM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (Canada) • 02/29/2024 08:01:00 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM