Singapore Post eCommerce logistics ties with Alibaba Group Holding Limited (Alibaba) was strengthened as Alibaba invested a total amount of S$86.2 million in SingPost’s logistics subsidiary Quantium Solutions International (QSI) and regulatory approval for Alibaba’s second investment in SingPost was attained. With this collaboration, Alibaba made 34 per cent of QSI, with SingPost owning the remaining 66 per cent.
QSI, the joint venture between SingPost and Alibaba, will be a common platform to grow and enhance eCommerce logistics capabilities in Southeast Asia and Oceania, to better serve the region’s rapidly growing online retail markets.
The collaboration will focus on strengthening QSI’s end-to-end eCommerce logistics network, building scale for future profitability. QSI currently operates in 11 markets, providing complete end-to-end eCommerce solutions that include warehousing, fulfilment, and last mile delivery.
Mr Simon Israel, Chairman, SingPost said, “The completion of the QSI joint venture underscores the deepening relationship and commitment between both companies to build a leading eCommerce logistics platform together across the region. Both, Alibaba and SingPost are confident in the long-term value of collaborating to serve the region’s fast rising eCommerce logistics needs.”
Mr Daniel Zhang, Chief Executive Officer, Alibaba Group adds, “Our enhanced collaboration with SingPost is another strategic step towards strengthening the fundamental infrastructure for digital commerce that will empower brands and retailers to sell globally through the Alibaba ecosystem. A robust logistics network is vital in helping our merchants to successfully serve the vast population across Southeast Asia and Oceania, and realise Alibaba’s vision to ultimately serve two billion consumers worldwide.”