Briefing: Alibaba’s Cainiao to raise delivery fleet wages 20% within 3 years
Apr 9, 2019
菜鸟裹裹：未来三年让快递小哥人均增收 20% – TechNode Chinese
What happened: Alibaba’s courier app Cainiao Guoguo announced today on China’s microblogging service Weibo that the company will recruit 100,000 more deliverymen within the next three years. The company added that it aims to increase the average income of its delivery fleet by more than 20% during the same period. Launched in 2016, Cainiao Guoguo is a one-stop package tracking and order-placing platform.
Why it’s important: The competition between Alibaba and JD.com is expanding beyond e-commerce business to logistics, a sector with significant overlap with their core business. Cainiao Guoguo’s announcement comes two days after news began circulating widely about JD.com replacing fixed salaries with commission-based wages for its more than 100,000 deliverymen, likely resulting in lowered compensation. China’s express delivery market has recorded sharp growth over the past few years, however, the logistics sector still depends heavily on manpower. Chinese tech giants including Alibaba, JD.com, and Meituan are working on their own autonomous delivery solutions to reduce labor costs.