(Reuters) – Alibaba’s logistics arm plans to merge its autonomous-driving unit with Chinese robovan company Zelos Technology, forming a new entity valued at approximately $2 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Reuters could not immediately verify the report. Alibaba and Zelos Technology did not immediately respond to Reuters’ request for comments.
The deal will see Alibaba acquire a stake in Zelos Technology, which will run the merged entity, the Journal said.
The unmanned-vehicle segment operated by Alibaba’s e-commerce logistics subsidiary Cainiao will be folded into Zelos, the report said, adding that the post-merger entity will operate as Cainiao Robovan, with a fleet of more than 20,000 robovans.
A Cainiao executive is also expected to join the board of Zelos, according to the WSJ.
Founded in 2021, Zelos specializes in autonomous logistics across postal, FMCG and express delivery sectors.
Reporting by Ananya Palyekar in Bengaluru; Editing by Mrigank Dhaniwala
