Alibaba's delivery arm to develop 1 mln smart vans

Cainiao is China's leading logistics firm that processes packages and parcels ordered through Alibaba's e-commerce platforms. [Photo: Chinanews.com]

Chinese e-commerce giant Alibaba's delivery arm Cainiao Network has announced a plan to partner with domestic automakers to produce 1 million smart vans powered by advanced Internet technology.

The company says a computing system will analyze real-time orders and design the most efficient routes for its delivery fleet.

The move will cut costs and reduce energy consumption.

The plan was piloted in two Chinese cities in April.

Vans traveled 30 percent shorter distances and saved around 20 percent on operational costs.

Cainiao also announced financial support of 50 billion yuan for logistics firms and delivery drivers participating in the plan.