Alibaba's Cainiao to Invest $2 Billion in Autonomous Trucking Startup Zelos Technology
In a significant bet on the future of freight, Alibaba Group's smart logistics network Cainiao is poised to invest approximately $2 billion in Zelos Technology, a developer of Level 4 autonomous driving systems for trucks, according to a Wall Street Journal report. The deal, expected to be finalized in the coming weeks, would forge a "deep strategic integration" between the two companies but will not give Cainiao a controlling stake.
The partnership aims to jointly develop and deploy a "RoboVan Super Carrier" network for unmanned long-haul logistics within China, potentially revolutionizing a sector strained by driver shortages and rising costs. This move aligns with Alibaba's broader strategy to embed artificial intelligence across its commerce and cloud ecosystems, following recent investments in AI chips and large language models.
"This isn't just a financial investment; it's a operational marriage," said logistics analyst Michael Chen of Bernstein Research. "Cainiao gets a leapfrog technology for its vast network, and Zelos gets the scale and data it desperately needs to refine its systems. It positions Alibaba to compete directly with global players like TuSimple and Waymo Via."
The reported investment comes as Alibaba's stock (NYSE: BABA) has seen a strong recovery, gaining over 76% in the past year. Analysts remain broadly bullish, with a median price target suggesting further upside. The company continues to pivot towards high-growth tech infrastructure amid a competitive e-commerce landscape.
Voices from the Industry
David Lin, Supply Chain Consultant (Shanghai): "This is a logical and necessary step. The economics of autonomous freight in China's massive logistics corridors are becoming undeniable. Cainiao-Zelos could set the de facto standard for how goods move between hubs."
Sarah Jennings, Tech Policy Analyst (London): "The regulatory hurdles for L4 deployment on public roads are immense, not just in China but everywhere. This partnership will be a key test case for whether the technology can meet both safety and scalability promises within this decade."
Marcus Thorne, Former Truck Driver & Advocate (Chicago): "Here we go again. Another corporate giant betting billions to eliminate skilled jobs. They talk about 'driver shortages,' but never about improving pay and conditions. This isn't innovation; it's displacement wrapped in silicon valley hype."
Priya Mehta, Venture Capitalist (Singapore): "The valuation is eye-catching. It signals that strategic investors like Alibaba are now willing to pay a premium for mature AV startups that have moved beyond the prototype phase. We expect a new wave of consolidation in the sector."