Cainiao Group is undergoing a major organizational restructuring to sharpen its focus as a specialized logistics company.. The changes aim to reinforce Cainiao’s operational excellence in its core logistics services while transferring e-commerce-aligned responsibilities to Alibaba’s other business groups, 36Kr has learned.
A key component of the restructuring involves moving more than 400 employees from Cainiao’s international division—previously serving AliExpress—to the Alibaba E-commerce Business Group. Ding Hongwei, a senior Cainiao executive, will now report directly to Jiang Fan, CEO of both the Taotian Group and the Alibaba International Digital Commerce Group. Since 2024, Ding has had dual reporting lines to Cainiao CEO Lin Wan and Jiang, reflecting ongoing collaboration between Cainiao and Alibaba’s e-commerce operations.
In addition, two other key teams—the domestic e-commerce supply chain solutions team and the electronic waybill team—will be integrated into Taotian.
“In simple terms, logistics tasks tied to e-commerce platforms will now be handled by the ‘front of house’ like Taotian and AliExpress, while logistics operations and services remain with Cainiao,” a Cainiao employee told 36Kr.
Cainiao is effectively transferring responsibilities for developing logistics strategies closely tied to e-commerce platforms. However, it will continue providing logistics services for Taotian-owned operations such as Tmall Supermarket and Tmall Global, while maintaining oversight of most warehousing and logistics functions for AliExpress’s cross-border e-commerce business.
This restructuring is not entirely new. For over a year, Cainiao and Alibaba’s e-commerce teams have worked closely together, establishing dedicated teams to support AliExpress and sharing spaces in international business parks. Cainiao has also played a key role in supporting Taobao Global’s free shipping initiatives for apparel and Taotian Group’s return shipping programs.
The restructuring seeks to clearly define the roles of e-commerce and logistics teams, aligning with Cainiao’s September 2023 IPO prospectus, which highlighted the company’s transformation from a technology platform into a comprehensive smart logistics network with end-to-end capabilities.
“Front-facing e-commerce leaders prioritize customer experience improvements. This stronger integration can enhance the competitiveness of Alibaba’s e-commerce platforms,” a Cainiao mid-level manager told 36Kr.
Established 11 years ago, Cainiao has redefined its focus across three core dimensions: globalization, industrialization, and digitization. These align with its primary business lines: express delivery (serving AliExpress, non-Alibaba clients, and subsidiaries like 4PX Express), supply chain management, and logistics technology.
Cainiao initially launched as a technology platform, with its first product being the electronic waybill. By 2019, the company had invested heavily in logistics infrastructure, including a global logistics network and partnerships with warehousing providers like 4PX. “It became clear that practical logistics operations were necessary to create a competitive edge,” a source familiar with the company said. This included managing delivery services and building its own facilities.
Cainiao’s shift to logistics-first operations enables it to adopt uniform standards for both Alibaba-affiliated and external clients. To address concerns about neutrality, Cainiao has expanded investments in non-Alibaba clients, including contracts with Temu. Its collaboration with AliExpress has also shifted to a more market-driven model.
Globalization remains central to Cainiao’s strategy. The company now operates across Greater China, Asia Pacific, the Americas, Europe, and the Middle East and Africa, utilizing a combined horizontal and vertical structure. Emphasizing this vision, CEO Lin Wan stated internally, “For Cainiao to truly globalize, its backend operations must also globalize. Only then can business expansion move at full speed.”
International business has become Cainiao’s largest growth driver. In the first two fiscal quarters of 2024, the division achieved revenue growth rates of 30% and 16%, respectively, making it Alibaba’s second fastest-growing unit after international commerce. Over half of Cainiao’s total revenue now stems from international logistics, including collaborations with external clients like JD.com.
Cainiao is now focused on attracting more external clients and expanding its cross-border operations. Recently, it began serving JD.com’s non-consignor platform and is actively pursuing partnerships with additional brands and platforms. The company continues to lead in cross-border deliveries by parcel volume and is scaling its local-to-local logistics services across Europe. Its rapid delivery options—such as next-day delivery in select European regions for EUR 2 (USD 2.1) and 3–5 day delivery across wider areas for EUR 3–5 (USD 3.1–5.2)—underscore its competitive edge.
From its inception, Cainiao was envisioned by Alibaba founder Jack Ma as a global smart logistics network. Today, that mission remains unchanged, though the company can now pursue it with sharper focus and precision.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Peng Qian for 36Kr.