Benzinga | Aug 26, 2021 10:04AM EDT

How JD.com Scores Against Alibaba In Terms Of Logistics?

* JD.com Inc (NASDAQ:JD) is in advanced discussions to acquire a controlling stake in China Logistics Property Holdings Co, Bloomberg reports.

* The Chinese e-commerce firm is negotiating with significant shareholders, China Logistics Chair Li Shifa and RRJ Capital. RRJ Capital and China Logistics have put over 50% of the company up for sale, seeking a valuation of about $2 billion.

* Chinese companies have been investing heavily in warehouses and logistics infrastructure following the pandemic-driven shift to e-commerce.

* Reuters reports that JD.com's inventory holding strategy and in-house delivery network control offered it an edge against Alibaba Group Holding Ltd (NYSE:BABA), which outsources its logistics operations.

* JD.com's own logistics unit increased revenues by 54% in the first half. JD Logistics Inc (OTC:JDLGF) (OTC:JDLGY) currently operates over 1,200 warehouses.

* JD.com, which recently reported a Q2 beat, does not expect any impact from the Chinese tech crackdown.

* Price Action: JD shares traded higher by 0.56% at $76.58 in the market session on the last check Thursday.