Cainiao Network, the logistics arm of Alibaba, said it will strengthen the deployment of artificial intelligent (AI) technology in its courier network by putting 1 million smart logistics vehicles into the market to cope with exploding delivery volumes in the future – expected to reach 1 billion a day within a decade. The smart logistics vehicles, co-manufactured with other automobile companies including SAIC Motor Corp and Dongfeng Motor Corp, will optimise the delivery route for the couriers based on Cainiao's advanced big data and algorithms, Cainiao Network's president Wan Lin said at a logistics forum in Hangzhou on Monday. According to Cainiao, the new smart vehicles have been introduced in Shenzhen and Chengdu as part of a trial programme, where they reduced travel distance and air travel rates. The logistics industry could see savings of as much as 10 billion yuan (US$1.4 billion) annually after all the vehicles are put in services within the next decade, the company estimates. Cainiao is pushing forward with its smart logistics initiative because a "consumption upgrade" in China will drive the evolution of new logistics systems which will require the entire logistics industry to optimise its efficiency to the fullest, according to Wan.
As Alibaba Group Holding Ltd. BABA -0.52 % prepares to announce quarterly earnings Thursday, analysts are looking for more clarity about its accounting policies and disclosures. The Chinese e-commerce giant's marketplaces have so far fought off the effects of China's slowing economy, and its American Depositary Shares are near their 52-week high. The stock closed at 85.24 a share in New York on Tuesday. Analysts expect Alibaba to report fiscal first-quarter revenue growth of 48% from a year earlier to 30 billion yuan ( 4.5 billion), according to Thomson One. Yet investor skepticism is high: The number of shares involved in bets that Alibaba's stock price will fall is up 29% since May 31.
This also would require an investment of more than 100 billion yuan (US$15.58 While Amazon remains mum over its on-off-on-again Singapore launch, Alibaba's online-offline strategy has cemented its footprint in the Chinese retail space, with further growth targeted for Southeast Asia. Specifically, Alibaba would aim to provide 24-hour delivery across China and 72-hour delivery for international markets. In addition, the Chinese e-commerce giant was targeting to drive down logistics costs to less than 5 percent of the country's gross domestic product (GDP). It currently accounts for 15 percent of national GDP.
Recent news about growth of Chinese robotics and related AI indicate just how massive their investments are and how well they are paying off. For example, 90% of the personal robots on display at the IFA consumer electronics trade show held in Berlin in September were developed and manufactured by Chinese companies. Further, Preqin reported that Q3 venture-backed deals totaled $49 billion. Included in the top 10 deals were Uber-competitor Grab's raising $2 billion from SoftBank and Didi Chuxing and Alibaba's $1.1 bn investment in eBay-like Tokopedia and $.8 bn to Cainiao (see below). Half of the top 10 were in Asia; only three were for US-based companies.
CHIBA, JAPAN - OCTOBER 15: A robot arm controlled remotely by an operator is seen in the ANA ... [ ] Holdings Inc. booth during the Ceatec Japan 2019 consumer electronics show on October 15, 2019 in Chiba, Japan. For all the high-technology available and widely adopted in the business world, many traditional industries have not been significantly impacted by it. Sure, developments in 3D printing, big data, cloud computing have created new industries unto themselves. Yet many classic industries, such as healthcare and insurance, have not tapped into the true potential of technologies like artificial intelligence to change the way they do things. That being said, there are always innovators and pathfinders that pursue revolutionary change in their industry.