Cainiao, Alibaba Group Holding’s logistics division, will merge its autonomous-driving unit with Chinese robovan company Zelos Technology. The resulting entity is valued at $2 billion. Under the agreement, Cainiao folds its unmanned-vehicle operations into Zelos and receives a stake in the new company. Zelos will operate the merged entity.
The new company will operate as Cainiao Robovan. It will manage a fleet of over 20,000 robovans. A Cainiao executive will also join the Zelos board.
The merger supports Alibaba’s ongoing restructuring efforts. Alibaba focuses on its core businesses, including e-commerce and artificial intelligence.