（Image Credits: JD Logistics）
After operating in the red for 14 years, JD.com’s logistics subsidiary is getting ready for an initial public offering in Hong Kong. JD Logistics will price its share between HK$39.36 and HK$43.36 apiece, which could see the firm raise up to about HK$26.4 billion or $3.4 billion, according to its new filing.
JD.com, Alibaba’s e-commerce rival in China, began building its own logistics and transportation network from the ground up in 2007 and spun out the unit in 2017, following a pattern where major segments of the tech giant became independent, such as JD.com’s health and fintech units. JD.com is currently the largest shareholder of JD Logistics with an aggregate stake of 79%.
Unlike Alibaba, which relies on a network of third-party partners to fulfill orders, JD.com takes a heavy-asset approach like Amazon, building up warehouse centers and keeping its own army of courier staff. As of 2020, JD Logistics had over 246,800 employees working in delivery, warehouse operations among other customer services. Its total headcount was 258,700 last year.
Post time: May-17-2021