- The domestic supply chain unit will continue serving both Alibaba and external merchants
- Cainiao will focus on global logistics and AI-powered supply chain services
Alibaba has clarified that Cainiao’s domestic supply chain business remains an independent company following a recent organizational restructuring, pushing back against market speculation that it had been absorbed into Taobao & Tmall Group.
According to a person familiar with the matter, reports that Cainiao’s domestic supply chain business had been “elevated” into Taobao & Tmall were “inaccurate.”
Instead, the unit now operates as an independent “N company” under Alibaba’s e-commerce business group, alongside Taobao and Tmall, while continuing to expand its business with external customers.
The source said the relationship mirrors that of Xianyu, Alibaba’s secondhand marketplace, which also operates as a standalone unit within the e-commerce group.
Bolstering fulfillment services
Meanwhile, Alibaba plans to continue investing in Cainiao’s domestic supply chain capabilities, strengthening fulfillment services for merchants while expanding AI-powered logistics capabilities.
Cainiao’s domestic supply chain business formally joined Alibaba’s e-commerce business group on July 1. Employees said customer service and day-to-day operations have remained unchanged since the integration, with no changes to employment contracts or office locations.
Staff were also told the business would continue serving both Alibaba and third-party merchants, rejecting speculation that it would focus exclusively on Taobao & Tmall.
The clarification comes as Cainiao sharpens its strategic priorities.
The company reported revenue of 101.3 billion yuan in fiscal 2025, with growth driven primarily by cross-border logistics fulfillment solutions.
It now operates more than 50 overseas warehouses across 18 countries and regions and plans to focus on scaling its international logistics and logistics technology businesses while remaining an independent company within Alibaba’s broader e-commerce ecosystem.
