Alibaba Merges Cainiao Robotics With Zelos in $2B Robovan Joint Venture
Alibaba will merge its Cainiao autonomous-driving unit with Zelos Technology, valuing the combined robovan business at about $2 billion and granting Cainiao a board seat. In Q2 FY26 it reported $34.81 billion revenue (+5% Y/Y), 61¢ adjusted EPS, while adjusted net income fell 72% to $1.45 billion.
1. Alibaba Merges Autonomous Logistics Unit with Zelos Technology
Alibaba is combining the autonomous-driving arm of its Cainiao logistics subsidiary with Chinese robovan specialist Zelos Technology in a transaction that values the merged business at approximately $2 billion. As part of the deal, Cainiao will take an equity stake in Zelos and retain the Cainiao Robovan brand as a standalone operation. A Cainiao executive is slated to join Zelos’s board, ensuring ongoing strategic oversight and integration of Alibaba’s last-mile delivery expertise with Zelos’s vehicle manufacturing capabilities. The merger accelerates Alibaba’s push into unmanned delivery solutions, positioning the combined entity to scale commercial deployments across urban and suburban markets.
2. Q2 Fiscal 2026 Results Show Steep Margin Erosion
In its fiscal second quarter ended September, Alibaba reported total revenue of $34.81 billion, a 5% year-on-year increase that rises to 15% on a like-for-like basis after excluding divested units. Adjusted earnings per American depositary share reached $0.61, topping consensus of $0.49, yet adjusted net income plunged 72% to $1.45 billion and adjusted EBITA declined 78% to $1.27 billion. Heavy investments in quick commerce, user-experience upgrades, acquisitions and technology drove the margin contraction, underscoring intensifying competition and the company’s commitment to long-term market share gains at the expense of near-term profitability.
3. Core E-Commerce and International Commerce Maintain Momentum
Domestic China e-commerce revenue grew 16% to $18.62 billion, supported by faster onboarding of Tmall brands and higher demand for quick-commerce offerings. International commerce revenue rose 10% to $4.89 billion, fueled by AliExpress’s expansion of local inventory in key regions. These segments continue to account for the majority of Alibaba’s top-line, reflecting resilient consumer demand and the company’s ability to capture cross-border trade flows despite macroeconomic headwinds.
4. Cloud Intelligence Group Powers Ahead with 34% Growth
Alibaba’s Cloud Intelligence Group delivered revenue of $5.59 billion, up 34% year-on-year, driven by strong public-cloud uptake and accelerating adoption of artificial-intelligence solutions among enterprise customers. Analysts from Nomura highlight that Alibaba is well-positioned to benefit from the broader AI deployment trend across China’s technology sector, citing rapid iteration on new products and an expanding portfolio of use cases in industries ranging from finance to manufacturing.