(Reuters) – Chinese robovan developer Zelostech said on Thursday that e-commerce giant Alibaba’s logistics arm, Cainiao, will take a stake in the company.
The deal will create a business valued around $2 billion, the Wall Street Journal, which first reported the news, said.
A spokesperson for the robovan developer said “Cainiao will not become a controlling shareholder of Zelostech.”
A robovan is a fully autonomous electric vehicle designed for freight. Zelostech’s Z10 model can transport a load of about 1.5 tonnes.
“Zelostech and Cainiao’s autonomous-driving unit have entered into a deep strategic integration, jointly building a RoboVan Super Carrier in the unmanned freight sector,” an emailed statement from Zelostech said.
The company said Cainiao will “contribute its autonomous-driving business” to the deal and make a cash investment in the company.
The Journal reported that Cainiao’s autonomous-driving unit will be folded into Zelostech, adding that Zelostech will operate both brands simultaneously.
Zelostech did not respond to a further request for comment. Alibaba did not immediately respond to a Reuters request for comment.
Reporting by Ananya Palyekar, Rajveer Singh Pardesi and Disha Mishra in Bengaluru; Editing by Mrigank Dhaniwala and Sahal Muhammed
