Alibaba Group’s logistics unit Cainiao is set to combine its autonomous-driving division with Chinese robotics startup Zelos Technology to form a new, technology-focused “robovan” business valued at roughly $2 billion, according to multiple news reports citing people familiar with the discussions.
The move comes as Chinese e-commerce giants intensify bets on automation to reduce last-mile delivery costs and boost efficiency in an extremely competitive logistics environment. It reflects a broader strategic shift from in-house autonomous R&D toward partnerships that scale faster and share capital risk.
Deal Structure and Strategic Footprint
Under the reported plan, Cainiao will contribute its autonomous driving assets — including a fleet of self-driven delivery vans (“robovans”) — into the merged entity, which is expected to operate under a working name like Cainiao Robovan. Alibaba is acquiring an equity stake in Zelos, and a senior Cainiao executive is anticipated to join Zelos’s board to ensure operational alignment.
Zelos Technology, founded in 2021 and focused on Level-4 autonomous logistics solutions for express and urban delivery, will run the combined business. Post-merger, the fleet could exceed 20,000 vehicles serving postal, retail and e-commerce customers.
Neither Alibaba nor Zelos has publicly confirmed the deal’s terms; regulatory approvals are still expected before a formal announcement.
Why This Matters Now
1. Logistics Costs and Automation Imperatives
China’s e-commerce market — already the world’s largest — continues to grapple with rising labor costs and thin margins in last-mile delivery. Autonomous solutions like robovans could materially reduce dependence on human drivers and improve urban delivery economics.
2. Cainiao’s Evolution Within Alibaba
Cainiao, originally launched in 2013 as a smart logistics network by Alibaba and partners, has become a central part of the group’s supply-chain strategy. Alibaba completed acquisition of the remaining shares in Cainiao in 2024, bringing it fully under the group’s control and shelving earlier IPO plans.
The merger represents an evolution beyond traditional parcel handling toward asset-light automated logistics platforms, aligning with broader digital transformation trends across global supply chains.
3. Competitive Dynamics in Autonomous Tech
While companies like Baidu, Pony.ai and WeRide advance autonomous passenger mobility, Zelos and its peers specialize in delivery automation — an adjacent niche with strong commercial demand and potentially quicker ROI. The merger gives Zelos immediate access to Cainiao’s massive logistical network and real-world deployment scale.
Market and Policy Context
The deal unfolds amid a cautious regulatory backdrop in China, where authorities are balancing innovation incentives with safety and data governance concerns in autonomous systems. Approval processes for autonomous vehicles — even in logistics — are becoming more stringent, requiring multi-agency oversight.
For Alibaba, this partnership also supports a broader business realignment under its “1+6+N” restructuring strategy, whereby independent operating units — including Cainiao — function with greater strategic autonomy while feeding core e-commerce and cloud intelligence growth.
Analyst and Competitive Implications
Industry analysts see the partnership as both a risk-sharing mechanism and a way to accelerate time-to-market for automated logistics — an area where China’s massive internal demand could yield early commercial leadership. It also positions Alibaba’s logistics arm to better compete with rivals such as JD.com, which operates an extensive self-built logistics network with its own automation initiatives.
Investors will be watching for clarity on governance, capital commitments and how revenues from the combined robovan operations will be reported.
What’s Next
A formal announcement — expected in coming days — should clarify ownership stakes, leadership roles, and an operational roadmap. Regulatory filings and local Chinese oversight could further shape the pace and structure of the integration.
In sum, the merger underscores a key trend in 2026: global tech giants are pivoting from pure R&D toward strategic alliances that leverage shared technology and infrastructure to tackle fundamental supply chain challenges at scale.
