JD.com unveils new logistics services arm

E-commerce giant says unit plans massive expansion, does not rule out future listing

Chinese e-commerce giant JD.com Inc on Tuesday announced the establishment of JD Logistics, a new business group under JD.com, to provide smart supply chain and logistics services.

The group said JD Logistics would provide business partners with comprehensive supply chain solutions, including warehousing, transportation, delivery, after-sales services as well as logistics services, including smart and cross-border logistics.

It will work together with Jingdong Mall to share online and offline resources and join hands with JD Finance, the financial arm of JD.com, to launch supply chain financial products and insurance products.

The company statement said that Wang Zhenhui, senior vice-president of JD.com and head of fulfillment operations, would serve as CEO of JD Logistics.

JD said its new unit would leverage the company's advanced technology and logistics expertise to provide smart supply chain and logistics services to businesses across a wide range of industries, to help reduce costs, increase efficiency and improve user experience.

The company said it did not rule out the possibility of seeking independent financing and being listed in the future, but added there were no detailed plans at present.

In the next five years, JD Logistics plans to expand the areas of its logistics center to more than 50 million square meters, build a trans-regional aviation logistics network and operate more than 20 self-run overseas warehouses - as well as cover over 100 countries and regions along the Belt and Road Initiative, with its B2B logistics covering more than 300 cities.

JD.com Chairman and CEO Liu Qiangdong said the new unit would leverage his company's access to data from every step of the e-commerce process.

"From ordering to delivery and after-sales service, JD Logistics will use AI, big data and automation to redefine the potential of e-commerce logistics once again."

Liu added his group hoped JD Logistics could be a major force in developing China's commercial infrastructure and would become a global model for smart supply chain solutions.

JD.com said its new logistics unit might overlap some delivery companies, but there would be more cooperation than competition.

By the end of 2016, JD.com operated 256 warehouses, 6,906 delivery stations and pickup stations across the country, providing last-mile delivery service nationally. It also operates seven large smart logistics centers called Asia No 1.

fanfeifei@chinadaily.com.cn