Multinational e-commerce group Alibaba and its smart logistics arm, Cainiao, have agreed on a US$13.8 billion cash injection into ZTO Express, one of the leaders in the express delivery sector, The Paper reported.

After the strategic investment, the two firms will hold a 10% equity stake in the target company. The investment will also see Cainiao and ZTO deepen their collaboration in the transformation of China’s logistics industry amid the growth of new retail.

The two parties will cooperate in all aspects of logistics services such as express delivery, warehouse allocation and cross-border delivery, and further polish the digital and intelligent logistic network.

Cainiao has built a nationwide intelligent warehouse network, which could support same-day and next-day delivery in nearly 1,500 districts and counties in China.