Taobao Launches Rocket-Powered Delivery
Collaboration with Zenyuan Technology
Global 1-Hour Delivery Zone... Expectations Rise
Chinese e-commerce company Taobao (under Alibaba Group) announced that it will launch an "express delivery" service capable of delivering products anywhere in the world within one hour using rockets.
Image of Taobao x Zenyuan Technology's 'Rocket Delivery Within 1 Hour Worldwide'. [Photo by Zenyuan Technology]
On the 31st (local time), Chinese media reported that Taobao announced an "express delivery" project utilizing reusable rockets in collaboration with Chinese rocket company "Jianyuan Technology (箭元科技)." Jianyuan Technology, established around November 2019, is China's largest private commercial rocket company, with major rockets including the "Yuanxingzhe-1 (元行者一?)." The head section of the rocket can carry cargo weighing approximately 10 tons.
Some voices express dissatisfaction, questioning whether this is an event-driven delivery service without consideration of launch and recovery costs and profitability. However, many are hopeful for the popularization of Taobao's "express delivery" service. When purchasing items from overseas sites like "AliExpress," delivery often takes up to a month, making it irrelevant for consumers who want fast delivery. By reducing the drawback of "delivery time," there is potential to attract customers who had previously overlooked Taobao.
On the other hand, some analysts interpret this service as a move to focus more on overseas business following Alibaba Group's sluggish growth in Chinese consumer markets last year. In the fourth quarter of last year, Alibaba's revenue was 260.3 billion yuan (48.1555 trillion KRW), but net profit sharply declined by 69% year-on-year to 4.433 billion yuan (approximately 2.658 trillion KRW).
Meanwhile, Alibaba's international e-commerce division reported a 44% increase in revenue in the fourth quarter of last year compared to the previous year, reaching 28.5 billion yuan (approximately 5.2899 trillion KRW). For AliExpress, which is popular among Korean users, order volume increased by 60% during that quarter.
Experts expressed expectations that this attempt will not only bring revolutionary changes to e-commerce delivery but also create new business opportunities in the commercial space market.
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