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Business · Retail
Pinduoduo to build AI-support logistics network to compete Alibaba’s cainiao
2019/08/23 10:01:07
Pinduoduo, Alibaba, Cainiao, logistics

Aug 23, 2019 (China Knowledge) - China’s third-largest e-commerce company Pinduoduo (PDD) is to build its own logistics data network supported by artificial intelligence (AI) becoming a challenger to Alibaba’s (BABA) logistics arm Cainiao Network.

The vice-president of strategy at Pinduoduo David Liu said that many merchants on Pinduoduo’s platform had to use the company’s rivals’ logistics system as the firm had none. Under such circumstances, Pinduoduo is not able to track when merchant ship goods and when customers receive goods they ordered on the platform.  

Fast and reliable delivery is essential for companies to gain a solid foothold in the rapid-growing e-commerce market in China.  Great transparency on the delivery of goods will be an advantage to companies in the sector to be more competitive. Liu said the company intended to leverage the data of demand and supply they have and invest in logistics technology to provide better service to customers and merchants on the platform.

Cainiao Network, a leader in this sector, has invested in the delivery robots courier service rating system and mapped out to open electronic logistics hubs across the world.  However, Liu said Pinduoduo prefers an “asset-light” business model rather than follows other e-commerce giants’ suit to operate warehouses or build a delivery fleet.

Pinduoduo will also emphasize on helping merchants to engage in the retail supply chain. For example, the largest online retail platform for fresh produce in China now plans to use big data analysis to help farmers to decide on when to plant and harvest certain fruits and when to package and ship those produces. The method can ensure consumers to receive fresh produce with minimal spoilage.

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