Archive

Reuters blog archive

from Breakingviews:

China’s e-commerce secret weapon: the delivery guy

By John Foley 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Want a Big Mac delivered to your door in minutes? Or a refrigerator by the end of the day? While U.S. retailers puzzle over how to make that happen, China’s e-commerce companies are already there. Servicing the country’s web-connected consumers at ever-faster speeds is driving some big businesses, not to mention stock market valuations. The secret weapon: the humble delivery guy.

Chinese e-commerce companies have taken two contrasting approaches to shipping. JD.com, the online marketplace that resembles Amazon, employs over 24,000 delivery workers, and is using the proceeds from a $1.8 billion initial public offering in May to take on more. Its closest rival Alibaba, likely to complete its own IPO in the next few months, doesn’t have its own logistics network, but depends on a huge “ecosystem” of other distribution companies. Alibaba is leading a consortium that plans to invest $16 billion in logistics.

In the West, companies like Amazon have struggled to bridge the “last mile” between warehouse and consumer at a low price. The ghost of dot-com failure Kozmo.com, which offered fast but uneconomical delivery of small items, hangs over them. By contrast, JD.com customers can place orders before 3 p.m. in some cities and receive their goods with no shipping charge by midnight the same day.

from Breakingviews:

Alibaba hints at overseas push with SingPost stake

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Alibaba hasn’t even completed its U.S. initial public offering, but already it is striking out overseas. A $249 million stake in logistics group Singapore Post targets one area where the Chinese e-commerce group may be able to apply its talent. But the concrete benefits of the deal are unclear – besides focusing investors’ attention on the potential value of growth outside the People’s Republic.

from Breakingviews:

China web giants take the fight offline in 2014

By Robyn Mak

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Remember when every offline company was desperate to become an online one? In China, it’s happening the other way round. The country’s internet giants are making forays into traditional industries, from logistics to consumer electronics. The pace will increase, but what starts as disruption could turn into overreach.

from Breakingviews:

China’s shipbuilding supertanker will turn slowly

By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

In 1433, China abandoned its costly maritime ambitions, forfeiting for centuries its chances of oceanic dominance. It is unlikely to make the same mistake again. While the tribulations of China Rongsheng show that the country’s modern shipping industry is in trouble, a sector with such strategic and symbolic importance can stay afloat long after its financial appeal has run dry.

from Breakingviews:

Hong Kong dockers’ pay sets tone for future strife

By Peter Thal Larsen

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Hong Kong’s port strike is over, but the tensions that sparked it remain. Dockers are feeling the squeeze of Hong Kong’s rising living costs, while port operators face challenges from China’s slowing and shifting economy. Labour relations look set to stay tense.

from Business Traveller:

Why City + Airport = the Future

United Parcel Service aircrafts are loaded with containers full of packages bound for their final destination at the UPS Worldport All Points International Hub. REUTERS/John Sommers II

United Parcel Service aircrafts are loaded with containers full of packages bound for their final destination at the UPS Worldport All Points International Hub. REUTERS/John Sommers II

It’s no longer ok to be a big city. Globalisation is Darwinian and only the hubbiest of hubs will survive. If we want best-of-the-planet goods to arrive the next morning, we must worship the airport.

from DealZone:

Deals du Jour

Wall Street banks and lawyers could collect nearly $1 billion in fees from the Federal Reserve Bank of New York and American International Group to help manage and break apart the insurer, the Wall Street Journal said, citing its own analysis.

The following M&A related stories were reported by Reuters and other media on Thursday:

from Shop Talk:

Wal-Mart on the move

bentonvilledistributioncenterMoving goods quickly and efficiently is key to Wal-Mart's low-price strategy. On Thursday, Reuters got a first-hand look at the discounter's Bentonville, Arkansas, distribution center that serves as a prototype for any new general merchandise distribution centers the company will add.

"Logistics is the lifeblood of Wal-Mart," said Kevin Jones, a Wal-Mart regional vice president, who underscored that several of the world's biggest retailer's chief executives, including Mike Duke, Lee Scott and David Glass, led logistics operations earlier in their careers.

  •