JD Unit Joined by French Giant Carrefour in Logistics
The logistics unit of JD.com announced a partnership with the multinational retailer ahead of a possible IPO.
JD.com Inc. (Nasdaq: JD), announced its cooperation with French multinational retailer, Carrefour S.A., in transportation.
The logistics unit of China's second-largest online retailer JD.com said it will provide cross-border import, customs clearance, sorting, distribution, and other logistics services to Carrefour. The cooperation between the two retail giants will be extended to product sales and collaboration on logistics models, the announcement said.
"JD Logistics offers one-stop cross-border services as well as local service full-service logistics solutions for foreign companies in China, and such local services include product tracking, inventory management, local distribution, and after-sales service," Xing Huang, the vice president of JD.com, said.
Its cross-border logistics network operates in 10 cross-border trade ports in China, with a focus on Beijing, Shanghai, and Guangzhou.
Under its innovative bonded warehouse mode, JD.com cross-border logistics can be completed within 10 minutes, and 90 percent of overseas products are delivered within 72 hours.
JD Logistics has been making moves toward an initial public offering, according to media reports. The possible IPO of JD's shipping branch surfaced as early as Jan 2018. Reuters reported JD Logistics kicked off a fundraising round in 2018 with a target of at least $2 billion.
The board of directors of the unit will consider a listing solely under the condition that the total market value of the company should reach $20 billion, Chinese media reported.
On Friday, shares in JD.com ended at $29.06, down 6 cents, after rising as high as $29.55 intraday after it announced its partnership with Carrefour.