The cross-border logistics service, a first for Cainiao in the Americas, was designed to handle parcel flow between the two countries, which was one of the region’s high-traffic corridors, the Alibaba unit said on Friday. Alibaba owns the South China Morning Post.
The service was expected to reach 99 per cent of the Mexico market and would be priced at around 60 per cent of the current market average, according to Cainiao.
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The initiative aimed to “reduce the long-standing cost barrier for US-Mexico parcel delivery for platforms and sellers”, the company said.
Cainiao was expected to control key nodes including sorting, line-haul transfer and last-mile delivery for the service.
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That would be based on the company’s ability to run the service with self-operated local networks – instead of outsourcing – in both the US and Mexico, according to Cainiao.
