With the express delivery service, Cainiao also promises to compensate consumers for any delivery delays or damage caused during shipment.
The company’s express-service push underscores the high stakes involved in China’s vast package delivery market, which is dominated by SF Holding, ZTO Express and JD Logistics.
More than 60 billion packages were delivered across mainland China in the first half of this year, representing growth of 17 per cent over the same period in 2022, according to data from the State Post Bureau.
During China’s recent 618 shopping festival, which started late May and concluded by mid-June, more than 400 million packages were collected each day, despite weak consumer spending in the world’s second-largest economy.
Cainiao’s roll-out of its express service followed the launch last month of its new delivery programme between mainland China and Hong Kong. Packages sent from Cainiao’s warehouses on the mainland are delivered to the city the next day. The firm offers up to 60 yuan (US$8.35) in compensation for each order delivered outside that 48-hour window.
Cainiao’s revenue grew 18 per cent year on year to 13.6 billion yuan in the March quarter, accounting for 7 per cent of Alibaba’s total revenue in that period. That growth was primarily driven by increased revenue per order from international fulfilment solution services and strong demand for consumer logistics services.
