Alibaba's delivery arm to develop 1 mln smart vans

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

Chinese e-commerce giant Alibaba's delivery arm Cainiao Network Monday announced a plan to partner with domestic automakers to produce 1 million smart vans powered by advanced Internet technology. [Photo: sina.com]

Cainiao said 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.

In two cities where the plan was piloted in April, vans traveled 30 percent shorter distances and saved 20 percent of the operational costs.

Partnering automakers include SAIC Motor, Dongfeng Motor, Reach Rental. Cainiao also announced financial support of 50 billion yuan (7.3 billion U.S. dollars) for logistics firms and delivery drivers participating in the plan.

Cainiao is China's leading logistics firm that processes packages and parcels ordered through Alibaba's e-commerce platforms.