Alibaba To Merge Autonomous Driving Unit With Zelos In $2 Billion Deal
Synopsis
Alibaba Group is preparing to merge its autonomous-driving logistics unit with Chinese robotics firm Zelos Technology to form a new business focused on self-driving delivery vans, valued at about $2 billion. The move, reported by the Wall Street Journal and cited by Reuters, signals Alibaba’s continued investment in automating last-mile logistics amid rising delivery costs. While key details remain undisclosed and the companies have not commented publicly, the venture reflects growing interest in autonomous delivery solutions across China’s logistics sector.
Alibaba Group Holding is set to merge its autonomous-driving logistics unit with Chinese robotics firm Zelos Technology to create a new business focused on self-driving delivery vans, valued at around $2 billion. The planned transaction, reported on January 29, 2026, reflects Alibaba’s continued push to automate last-mile logistics as competition and costs rise across China’s e-commerce sector.
Formation of a New Autonomous Delivery Business
Alibaba’s logistics operations, closely linked to its Cainiao network, are expected to combine their autonomous vehicle unit with Zelos Technology, according to a Wall Street Journal report cited by Reuters. The merger would bring together Alibaba’s delivery infrastructure and Zelos’s autonomous vehicle technology under a newly formed entity focused on “robovans” self-driving cargo vehicles designed for urban delivery routes.
The combined business is estimated to be valued at approximately $2 billion, though financial terms, ownership structure, and governance details have not been publicly disclosed.
The venture is expected to prioritise autonomous vans capable of handling short-distance logistics, including parcel and goods delivery within cities. These vehicles are intended to operate without human drivers, relying on sensors, mapping systems, and artificial intelligence to navigate complex urban environments.
Cost Pressures in E-Commerce Logistics
For Alibaba, delivery costs remain one of the most significant expenses tied to its e-commerce operations. Automating last-mile delivery could help the company reduce labour dependence, manage rising wages, and improve delivery efficiency, particularly in densely populated cities where traditional logistics face congestion and delays.
The reported deal highlights a wider trend within China’s logistics and technology sectors, where companies are increasingly investing in autonomous vehicles to address structural challenges such as labour shortages and rising operational costs. Autonomous delivery solutions are being explored across the retail, food delivery, and parcel logistics industries.
As of publication, Alibaba Group and Zelos Technology have not issued official statements confirming the merger plans. Reuters reported that the information was based on sources cited by the Wall Street Journal and noted that the details could not be independently verified.
No comments were immediately available regarding potential manufacturing partners, deployment timelines, or regulatory approvals.
Alibaba’s Logistics Strategy
Alibaba has steadily expanded Cainiao Network into one of China’s largest logistics platforms, supporting both domestic and cross-border deliveries. Over recent years, the group has invested in automation, data-driven routing, and smart warehouses to improve efficiency amid slowing growth in China’s online retail market.
The move toward autonomous delivery vehicles fits into Alibaba’s broader strategy of modernising logistics infrastructure rather than relying solely on traditional courier networks.
Zelos Technology is a Chinese company specialising in autonomous driving systems for delivery vehicles. The firm has focused on developing robovans capable of navigating city streets and completing short-range logistics tasks. Prior to the reported merger, Zelos had attracted interest from investors focused on robotics and mobility technologies.
Regulatory Review and Integration
If the merger proceeds, it is expected to undergo regulatory scrutiny in China, particularly given the involvement of autonomous driving technology. Any approvals could influence the timing of formal completion and subsequent vehicle deployment.
Following regulatory clearance, the new entity could begin pilot programmes within Alibaba’s logistics network. Initial use cases may include fixed delivery routes in selected urban areas, with broader expansion dependent on performance, safety records, and regulatory acceptance.
Key Highlights
- Alibaba plans to merge its autonomous logistics unit with Zelos Technology, valuing the venture at about $2 billion.
- The new business will focus on self-driving delivery vans for urban logistics operations.
- Details of ownership, timelines, and regulatory approvals have not yet been disclosed.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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