Moreover, Alibaba has also been pouring cash into other logistics ventures. Earlier this year it pumped $4.6 billion into Suning, an electronics retailer that owns 65 national and regional distribution centers. It has invested in Singapore Post and YTO Express, a delivery company that is part of Cainiao’s network. And last year it bought stakes in Chinese electronics group Haier and its logistics subsidiary, as well as in a department store operator whose parent is Cainiao’s second-largest shareholder. In total Alibaba has spent at least $6.3 billion, according to Breakingviews calculations.

This matters, because the company founded by Jack Ma has made a virtue of its asset-light business model. Not holding inventory and outsourcing delivery to other providers has proved lucrative. Alibaba’s adjusted net profit margin in the quarter ending June was 47 percent. Contrast that with its Chinese rival JD.com, which has adopted an Amazon-like model that requires it to maintain a large inventory and build up its own delivery network. The $36 billion group has yet to turn a profit.

Yet there are signs that getting packages to consumers quickly and reliably is an increasingly important battleground. JD.com offers same-day and next-day services for over 80 percent of orders it delivers while Alibaba aims to have next-day delivery available in 50 cities by the end of the year. Cainiao has said it plans to spend 100 billion renminbi over the next few years and wants to quintuple its warehouse space to five million square meters next year.

Meanwhile, Alibaba and JD.com are battling it out in time-sensitive products like fresh groceries: Earlier this year, Cainiao started offering same-day food delivery in Beijing and Shanghai for Alibaba’s online supermarket. JD.com announced a $700 million investment in a supermarket operator in August. The latest e-commerce buzzword – “online to offline” – also hinges on speedy and reliable deliveries.

Because it is a minority investor, Alibaba doesn’t have to break out financial results for its logistics ventures. It is not clear from the company’s financial statements whether Cainiao is generating any significant revenue or making a profit.