In brief: China’s JD forays into parcel delivery

Chinese ecommerce giant JD today said it was launching a parcel delivery business, a move which could help the firm leverage its network of warehouses and drivers to bolster flagging profits.

The shift pits JD into greater competition with major rival Alibaba Group’s Cainiao network, as well as dedicated domestic parcel delivery firms such as ZTO Express and YTO Express Group Co Ltd.

Source: Reuters

JD claims to be the only large-scale ecommerce company in the world to operate a nationwide in-house logistics network.

Its new parcel delivery service enables users in Beijing, Shanghai, and Guangzhou to send items throughout mainland China. Powered by its proprietary supply chain management technology, JD promises to deliver over 90 percent of orders on the same or next day, which are dispatched using its network of delivery staff.

The move is also part of the company’s strategy of opening up its technology and infrastructure to other businesses by offering them “retail-as-a-service.”