Alibaba opens walled garden to rival JD.com’s logistics services

China’s tech giants have been breaking down the digital walls between their ecosystems in response to Beijing’s call

Reading Time:2 minutes

The Alibaba headquarters in Hangzhou, China. Photo: Bloomberg

Published: 8:00am, 17 Oct 2024Updated: 8:23am, 17 Oct 2024

Alibaba Group Holding is giving merchants on its e-commerce platforms the option to use logistics services from rival JD.com, the latest example of Chinese tech giants moving to tear down digital walls that once separated their ecosystems.

A range of services offered by JD.com’s logistics arm, from warehousing to shipping, will become available to merchants on Alibaba’s Taobao and Tmall, the two largest online marketplaces in China, according to a statement from JD Logistics on Wednesday.

Customers can then choose JD as their preferred courier for delivery or returns, and track their packages directly on Taobao or Tmall. Alibaba owns the South China Morning Post.

The move marks a rare collaboration between two of China’s largest e-commerce giants, which have been locked in stiff competition in a fragile domestic economy. Ahead of this year’s Singles’ Day mega sales events, both companies have invested heavily in Hong Kong in search of new growth.

A JD.com logistics facility in Xian, China’s Shaanxi province. Photo: VCG via Getty Images

While Big Tech companies in China have long separated the country’s cyberspace into exclusive ecosystems, they have been gradually tearing down these so-called walled gardens after Beijing in 2021 started stamping out monopolistic practices and encouraging greater competition in the industry.