Please ensure Javascript is enabled for purposes of website accessibility

Alibaba's China Delivery Businesses Returns to Pre-Coronavirus Levels

By Donna Fuscaldo - Mar 10, 2020 at 11:10AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

China is showing signs that business is returning to pre-coronavirus levels, with Alibaba reporting its delivery operations are fully staffed again.

Businesses are resuming pre-coronavirus output in China, with Alibaba's (BABA -0.62%) delivery operations returning to normal staffing levels. 

Cainiao, the global logistics company majority-owned by Alibaba, has returned to pre-coronavirus levels, an Alibaba spokesman told Bloomberg. The unit had suffered through a few weeks of transport disruptions which hurt shipments as the virus spread throughout the world.

A blood test with coronavirus label.

Image source: Getty Images.

Cainiao's operations, which support Alibaba's huge eCommerce business, employs millions of delivery people and handles billions of packages daily. During the Global Shopping Festival in November, Cainiao delivered a record 1.29 billion packages., the meal delivery service owned by Alibaba and Freshippo, its grocery chain, is also delivering at normal levels again, according to Bloomberg

The commentary from Alibaba comes as other Chinese companies express optimism they are returning to normal levels after an epidemic that wreaked havoc on the supply chain, quarantined millions of people, and dealt a blow to the global economy.

Foxconn, one of the main assemblers of Apple's (AAPL 1.30%) iPhone, said it expects production to be back to normal by the end of March. The company did warn there are still uncertainties regarding the virus and it's not clear how big of an impact the shutdown of production will have on its full-year earnings.

Meanwhile, (JD 0.48%), the Chinese eCommerce rival to Alibaba, forecast revenue growth of at least 10% for the current quarter, despite the coronavirus outbreak. Much of the sales likely came before the quarantines in China, but it does underscore the short term impact Chinese companies are feeling from the outbreak, at least in China.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$139.23 (1.30%) $1.79, Inc. Stock Quote, Inc.
$64.85 (0.48%) $0.31
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
$116.03 (-0.62%) $0.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.