(Yicai Global) May 23 -- Cainiao Network Technology Co., Alibaba Group Holding Ltd.'s [NYSE:BABA] logistics affiliate, has recently initiated a new-energy smart logistics vehicle program, dubbed ACE, and plans to install a Big Data 'smart brain' in a million new-energy freight vehicles over the next five years, cnstock.com reported.
Alibaba's Ant Financial Services Group and its Mybank will front CNY50 billion (USD7.3 billion) to support the project, Cainiao said yesterday when announcing the program. Major couriers, including Shanghai Yunda Express Co. and YTO Express Group Co. [SHA:600233], and vehicle makers SAIC Motor Corp. Ltd. [SHA:600104] and Dongfeng Motor Corp. [HKG:0489] will become cooperative partners of the program.
As the first Big Data company to get involved in setting industry standards in smart logistics, Cainiao will work with well-known automakers to create a range of new-energy smart vehicles for freight.
Those involved in the ACE program think the 'smart brain' could cut costs in the logistics industry by CNY10 billion a year.
Set up by Alibaba, Cainiao aims to build a backbone for smart logistics and integrate the production and circulation of data to enhance operating efficiency of couriers and other logistics companies.