Alibaba Takes Control of Unprofitable Delivery Business

The transcript discusses Alibaba's significant growth in the e-commerce sector in China and its logistics challenges. It highlights Alibaba's strategy of partnering with various logistics companies and its recent acquisition of a controlling stake in a logistics partner. The discussion also covers the SEC probe into Alibaba's accounting practices, particularly the equity method used for reporting investments. Alibaba's plans to scale globally and transition to a more asset-heavy model are explored, with insights from Jack Ma. The transcript concludes with Alibaba's ambitious goal to handle a billion packages daily, especially during the Singles Day shopping event.

What strategic move did Alibaba make to address their last mile delivery issues?

• They acquired a new e-commerce platform.

• They increased their stake in a logistics company.

• They partnered with Amazon for logistics.

• They outsourced delivery to a third party.

What was the main concern of the SEC probe into Alibaba?

• Fraud allegations

• Insider trading

• Bookkeeping issues

• Tax evasion

How does Alibaba's equity method of accounting potentially help with the SEC probe?

• It simplifies their tax filings.

• It clarifies their ownership percentages.

• It circumvents the need for a probe.

• It increases their investment gains.

What is Alibaba's approach to logistics compared to Amazon?

• They rely entirely on third-party logistics.

• They have a similar logistics model to Amazon.

• They focus on being a platform without owning inventory.

• They own large warehouses like Amazon.

What is Alibaba's ambitious goal for package handling in the coming years?

• 500 million packages a day

• 100 million packages a day

• 2 billion packages a day

• 1 billion packages a day