BEIJING, Jan. 30 2026 — Alibaba’s logistics unit is set to merge its autonomous vehicle operations with Chinese robovan specialist Zelos Technology, creating a business valued at about $2 billion according to people familiar with the matter. The agreement will fold Alibaba’s Cainiao unmanned vehicle unit into Zelos while giving the e-commerce giant a stake in the new entity, the Wall Street Journal reported.

The merger marks another major step in China’s push to expand self-driving delivery services at scale. Neither company has confirmed the terms publicly.

Robovan Fleet Expansion

The merged operation, expected to operate under the name Cainiao Robovan, will manage a fleet projected to exceed 20,000 autonomous delivery vans. These vehicles are designed to make postal, express, and retail deliveries without drivers, serving both urban and intercity routes.

Technology and Vehicle Capabilities: Zelos, founded in 2021, has developed a range of self-driving freight vehicles already in operation across parts of China’s logistics network. The vans are electric and capable of carrying both light and heavy loads, including models that can transport roughly 1.5 tonnes. Pre-mapped routes allow the vehicles to complete repeatable deliveries with minimal human oversight, reducing operational costs for clients while maintaining reliability across cities.

Cainiao has also deployed autonomous vans in numerous cities, integrating pilot programs into e-commerce and postal operations. This experience provides the new entity with immediate access to operational expertise and real-world testing environments, enabling faster scaling of autonomous delivery services.

Projected Scale and Deployment: The combined fleet is expected to cover thousands of kilometers of delivery routes across China, serving major retailers, express companies, and postal networks. By linking Zelos’s technology with Cainiao’s distribution network, the merged operation could offer frequent, predictable, and automated deliveries at an unprecedented scale. Analysts say the scale of deployment positions the venture to become a benchmark for driverless logistics in the country.

Deal Structure and Stakes

According to sources, Zelos will retain operational control of the combined business, while Cainiao secures an equity stake and contributes its autonomous driving resources. A senior Cainiao executive is expected to join Zelos’s board as part of the arrangement.

A Zelos spokesperson confirmed Cainiao will not be the controlling shareholder, signaling that the partnership allows Zelos to guide vehicle development while leveraging Alibaba’s distribution network. The deal includes cash investment from Alibaba alongside the contribution of unmanned vehicle assets.

Industry Context

China’s e-commerce logistics sector is among the most competitive globally, with companies seeking faster and more cost-efficient delivery models. Autonomous delivery vehicles form a growing segment of that effort, particularly for last-mile routes and repeatable freight corridors.

Zelos’s robovans, including models capable of carrying roughly 1.5 tonnes, serve both heavy and smaller urban deliveries. The electric vehicles operate on pre-mapped routes, reducing reliance on human drivers and increasing operational consistency. Observers say the merger could reshape urban delivery logistics for major retailers and express companies.

Regulatory and Market Considerations

The combined operation will require approval from regulatory authorities overseeing autonomous vehicle deployment. Industry analysts note that these processes could affect the timeline for full-scale operations.

Market watchers say the merged business could change delivery speeds and costs for companies relying on driverless freight services. With Alibaba’s extensive logistics network and Zelos’s technology, the venture could become a benchmark for autonomous van deployment across China.

Outlook for the Joint Venture

Sources familiar with the deal expect the merged company to operate thousands of vans serving a variety of logistics clients beyond Alibaba’s own e-commerce business. Investor interest in autonomous delivery technologies has grown alongside expectations for industrial-scale driverless vehicle operations.

The final terms may still be adjusted before a public announcement, and both companies will likely face regulatory and operational steps before launching the venture fully. Analysts will watch for improvements in delivery efficiency and the potential effects on urban logistics competition.