Singapore Post (SingPost) and the Alibaba Group have announced three new initiatives for e-commerce logistics collaboration.
The first initiative is Alibaba’s investment of up to approximately $67.85 million (for a 34% stake) in Quantium Solutions International (QSI), a SingPost subsidiary.
QSI, which provides e-commerce logistics and fulfilment services across the Asia-Pacific region, has a network that spans more than 10 countries and offers e-commerce logistics solutions and warehousing services.
Under the plan, QSI will become the platform for SingPost and Alibaba and will broaden its service to encompass e-commerce warehousing, last-mile delivery and other end-to-end e-commerce solutions.
The second initiative is the purchase of 107.5 million shares of SingPost for $138.6 million by Alibaba, increasing its interest in the company from 10.23% to 14.51% upon completion of the deal. The acquisition is subject to Infocommunications Development Authority of Singapore (IDA) and SingPost's shareholder approvals.
Daniel Zhang, chief executive officer of Alibaba Group, said the additional investment into SingPost signify the company’s commitment in expanding our global logistics footprint.
The third initiative is a joint strategic development framework that will see both companies sharing their respective knowledge and leverage each other's strengths to scale across the e-commerce logistics value chain.
"The pace of transformation at SingPost has been accelerating steadily. As a postal service provider, we are on a burning platform, facing a global decline in mail revenue with trends like e-substitution and lifestyle changes. It is a win-win situation for both of us because we share similar goals and have a natural fit between our operations across Asia,” said Lim Ho Kee, chairman of SingPost.