Chinese e-commerce giant and parent of c-to-c platforms Taobao and Xianyu, Alibaba Group Holding Ltd. (NYSE: BABA) has acquired a stake in yet another domestic logistics provider, STO Express Co. Ltd., for $678.5 million U.S., according to a report on

Alibaba has reportedly acquired a 49 percent stake in a new entity, part-owned by Shanghai Deyin Investment Holding Co. Ltd., a shareholder in STO Express. The deal gives Alibaba 14 percent ownership in STO Express.

Alibaba has been expanding its market share in China’s logistics industry by backing a number of large-scale couriers in the country over the past years. So far, the company has backed YTO Express Group Co. Ltd., Best Inc. (NYSE: BEST), and ZTO Express (Cayman) Inc. (NYSE: ZTO).

Alibaba’s own shipments for its core business – e-commerce – has been run by Cainiao Smart Logistics Network Ltd. Cainiao provides real-time access to data for merchants to better manage their inventory and warehousing, for consumers to track their orders, and for express courier companies to optimize delivery routes.

Cainiao competes with major players in China’s logistics industry including Shenzhen-based SF Express Co. Ltd., which operates SF Airlines, as well as JD Logistics, the transportation unit of second-largest retailer giant, Inc. (Nasdaq: JD).

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