Further reducing costs and improving efficiency have become key points in China’s logistics sector, as companies jockey for any advantage they can find in the crowded and highly competitive space where services are largely the same. JD Logistics Inc. (2618.HK) is taking the differentiation game further by trying to offer the widest range of “integrated supply chain services” that appeal to customers with many differing needs.
In the latest step in that direction, the company this month announced an agreement to buy the remaining 36.43% of Kuayue-Express that it doesn’t already own for up to 6.48 billion yuan ($894 million), making Kuayue-Express into a wholly owned subsidiary.
The acquisition by the logistics unit of e-commerce giant JD.com is divided into three phases. In the first, JD Logistics will acquire about 16.43% of Kuayue-Express for 2.31 billion yuan. Payment for the second and third stages will be determined based on Kuayue-Express’ future performance.