Alibaba set up a logistics subsidiary Cainiao Network in 2013. Cainiao's business model is to work with various express delivery companies to produce an open source standardized logistics process and gain insights that will help improve operational efficiency.

At present, Alibaba's Cainiao works with 15 mainstream express companies in China and thousands of other distribution partners around the world, who can use Cainiao's data platform to obtain all kinds of information, from electronic consignment note input to distribution volume forecast data brought by big data technology during peak periods such as " Double Eleven".

In the area of new technology development, Cainiao has invested a huge amount of money to work with partners such as Quick Tron to develop technology and deploy unmanned trucks capable of carrying half a ton of heavy goods. He also worked with China FAW to develop unmanned trucks for long-distance freight transportation and with Robo Sense, an auto-driving technology company, to develop an unmanned logistics vehicle called " Small G Plus".

Cainiao is also working with Beihang UAV Company to develop a delivery UAV - perhaps the world's largest civilian UAV. The UAV has a wingspan of nearly 20 meters and can fly 1500 kilometers. It will be able to carry more than one ton of cargo in the future.