Alibaba Merges Cainiao Self-Driving Unit with Zelos in $2 Billion Deal
Alibaba is merging its Cainiao autonomous-driving logistics unit with Zelos Technology in a deal valuing the combined business at about $2 billion, with Cainiao taking a stake and securing a board seat. The company’s shares have jumped 81% over the past year, driven by Cloud and AI momentum and stabilizing e-commerce.
1. Alibaba Merges Autonomous-Driving Unit with Zelos
Alibaba Group’s logistics arm has agreed to merge its autonomous-driving division with Chinese robovan specialist Zelos Technology, creating a combined business valued at roughly $2 billion. Under the transaction, Cainiao—Alibaba’s e-commerce logistics subsidiary—will take an equity stake in Zelos, which will operate the merged entity. Cainiao Robovan will retain its brand identity and a senior Cainiao executive will join Zelos’s board, integrating Alibaba’s self-driving vehicle capabilities into a single platform designed to scale last-mile delivery solutions.
2. Stock Surges on Cloud and AI Momentum
Over the past year, Alibaba shares have climbed 81%, driven by rapid expansion in its Cloud Intelligence Group and accelerating AI deployments alongside a stabilizing core e-commerce business. Investors cheered the company’s fiscal second-quarter revenue of $34.81 billion, a 5% year-over-year increase that outpaced consensus forecasts. On a like-for-like basis—excluding divested operations—revenues rose 15%, underscoring the resilience of Alibaba’s domestic marketplace and international commerce segments.
3. Earnings Reveal Investment-Driven Profit Declines
Despite top-line strength, Alibaba’s heavier spending on quick commerce, platform enhancements and strategic acquisitions led to a 72% drop in adjusted net income to $1.45 billion and a 78% decline in adjusted EBITA to $1.27 billion in the quarter. Management signaled that these investments are critical to enhancing user experience, scaling delivery infrastructure and maintaining competitive positioning in both domestic and cross-border e-commerce.
4. Cloud Intelligence Fuels Analyst Optimism
Alibaba’s Cloud Intelligence Group delivered 34% year-over-year revenue growth to $5.59 billion, reflecting strong public cloud demand and a surge in enterprise AI use cases. Nomura analysts highlight Alibaba’s AI innovation leadership in China, while Morgan Stanley notes that accelerating cloud adoption and value-added services will drive margin expansion over the next two years. Consensus forecasts anticipate continued double-digit growth in cloud revenues as AI workloads proliferate across banking, manufacturing and retail sectors.