Chinese e-commerce giant Alibaba delivery arm Cainiao Network has announced USD 7.3 billion investment to produce one million smart vans in partnership with domestic automakers for efficient delivery.
Cainiao said a computing system, powered by the Internet, will analyse real-time orders and design the most efficient routes for its delivery fleet. The move will cut cost and reduce energy consumption.
In two cities where the plan was piloted in April, vans travelled 30 per cent shorter distances and saved 20 per cent of the operational costs.
Cainiao is Chinas logistics firm that processes packages and parcels ordered through Alibabas e-commerce platforms.