đ Alibaba reduces stake in GoGoX amid stiff mainland competition.. Alibaba trims GoGoX stake to 8.89% (from 12.23%) amidst fierce mainland competition. GoGoX's continuous losses since 2018 and Alibaba's focus on Cainiao IPO reflect shifting strategies in the competitive logistics market. GoGoX's expansion in Asia contrasts with Alibaba's strategic divestment
Alibaba Group has strategically reduced its stake in logistics service provider GoGoX, amidst mounting competition and regulatory pressures in China's intracity delivery market.
Despite its expansion across Asia, GoGoX struggles with competitive pressures, leading to continuous losses since 2018. Alibaba's divestment decision reflects these challenges and a shift in its investment strategy.
Alibaba's partial divestment in GoGoX coincides with its preparations for the IPO of Cainiao Smart Logistics Network, indicating a realignment of its logistics investments.
The intracity delivery market is fiercely competitive, with players like Didi Chuxing and Full Truck Alliance entering the fray, intensifying the competition for GoGoX.
While GoGoX expands its footprint across Hong Kong, mainland China, and other Asian countries, Alibaba's stake reduction signifies a contrasting approach, focusing more on its own logistics arm, Cainiao.
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