DHL to buy stake in Cainiao's Poland subsidiary

Partners will merge existing parcel locker networks so that consumers get immediate and seamless access

DHL to buy stake in Cainiaos Poland subsidiary
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(From left): William Xiong, Chief Strategy Officer and General Manager of Europe and SEA regions, Cainiao Network and Pablo Ciano, CEO, DHL eCommerce Solutions

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DHL eCommerce Solutions, the e-commerce logistics specialist of Deutsche Post DHL Group, and Cainiao Network, the logistics arm of Alibaba Group, have signed an agreement under which DHL will purchase part of the equity of Cainiao's subsidiary in Poland.

"The partnership aims to improve the quality and speed of Poland's out-of-home delivery (OOH). In the first phase following the transaction, the two companies plan to invest €60 million to install parcel lockers across the country with the aspiration of forming one of Poland's largest access point networks," says an official release from DHL.

Pablo Ciano, CEO, DHL eCommerce Solutions says: "Poland is one of the fastest growing e-commerce markets in Europe, expected to double by 2027, and up to 40 percent of consumers prefer to have shipments delivered to parcel lockers. By joining forces with Cainiao, we will strengthen our position as a trusted parcel provider and create an extensive network of state-of-the-art parcel lockers. In this way, we can provide our customers with an even greater shipping experience, on top of our existing to-door delivery options."

To start, both partners will merge their existing parcel locker networks so that consumers get immediate and seamless access to the offerings of DHL and Cainiao, the release said. "The two companies already operate 1,200 parcel lockers in Poland. Based on the existing DHL network of parcel shops and access points, the companies will invest €60 million in installing modern parcel lockers with user-friendly interfaces at key locations. The ultimate ambition is to build Poland's leading parcel locker network with seamless coverage of the first and last mile, adding to the already extensive network operated by DHL in Europe, totaling over 90,000 access points."

Cainiao has been setting up its regional hub in Liege, Belgium and sorting centres in major markets in Europe. This is further complemented by a network of parcel lockers in Poland, Spain, and France to provide a more efficient and seamless logistics experience across Europe, the release said.

"As we tap into the great potential of Europe's ecommerce market, Cainiao strives to contribute to the growth of a sustainable logistics ecosystem by deepening our cooperation with our local partners," says William Xiong, Chief Strategy Officer and General Manager of Europe and SEA regions, Cainiao Network. "We are glad to have found such a strong and well-established partner in DHL who shares our vision. By combining both companies' logistics, technology, and e-commerce expertise, we aspire to deliver superior service to our clients and create an unmatched online shopping experience for consumers."

The transaction is subject to merger control clearance in jurisdictions of certain countries, the release added.

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