Alibaba and Singapore’s national postal service provider SingPost have signed a deal that will see the e-commerce giant investing $249 million into the postal service. The goal of Alibaba’s investment seems to be securing new expansion areas and with the SingPost deal, it will have access to entirely new routes of shipping, faster last-mile delivery, and other logistics capabilities.
With a few exceptions, China’s e-commerce giant is similar to services in the west like Amazon. Just as Amazon is trying to improve shipping wherever possible, Alibaba appears to be doing the same thing and it doesn’t mind multi-million dollar investments as long as they will help in the long run.
On a greater level, Alibaba will now be directly tied to SingPost, since it is taking a 10.35 percent stake in the state-owned company. This means that Alibaba will actually become the second largest stakeholder in SingPost, with the government being in control of a 25 percent share.
One of Alibaba’s executives is also expected to join the board of directors at SingPost. Direct communication and cooperation between the two companies can be expected in the future, meaning that the two services are working towards an e-commerce driven future and Alibaba is a big part of that.