Alibaba will invest 4.66 billion yuan ($693 million) in STO Express, and will explore further cooperation in logistics technology, express terminals and new retail logistics with STO Express after the transaction, according to an announcement by the latter company.

Alibaba will hold 49 percent of shares by paying 4.66 billion yuan in a new company to be established by Shanghai Deyin Investment Holding Co LTD, holding 53.76 percent of STO Express' shares until March 11, said the announcement.

This critical progress brings the company one step closer to the goal of delivering products within 24 hours nationwide and 72 hours globally, a Sina report said.

Established in 1993, the Shenzhen-listed STO Express is one of the pioneer private express companies, taking a leading role in China's logistics industry and serving as a close logistics partner with Alibaba.

Alibaba's smart logistics network Cainiao Network has attracted over 3,000 logistics companies worldwide and formed strategic cooperation with postal, air transport and maritime dedicated line networks with major countries in the world.

Express deliveries in China have increased at a rapid rate in the past decade, with 50 billion deliveries in 2018 accounting for over 40 percent of the world's total. China's logistics infrastructure has transformed to technology-intensive from labor-intensive within the same period.