Briefing: JD.com ups alliance with $54 million investment in Xinning Logistics
May 14, 2019
京东物流3.76亿投新宁物流 计划管控超200万车 – Sina Tech
What happened: JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, has invested RMB 376 million (around $54 million) in Xinning Logistics, a supply chain logistics service provider listed on China’s A-stock market that it inked a strategic partnership with in October. The two companies plan to include more than 2 million vehicles in their smart logistics system, including the internet of cars, internet of cargo, and smart warehousing technologies.
Why it’s important: The partners have been working on integrating their supply chains and implementing intelligent logistics and unmanned delivery technologies. JD.com remains focused on growing its logistics business, although its logistics arm is still loss-making. JD.com logged RMB 121.1 billion in net revenue in the first quarter this year, but its costs surged 19.7% year on year to RMB 102.9 billion as it increases spending on highly automated warehouses and other technology.