Cainiao Launches Low-Cost US–Mexico G2G Parcel Service

Cainiao, the e-commerce logistics arm of Alibaba Group, has expanded its global network with the launch of a new Americas global-to-global (G2G) cross-border parcel service, starting with a dedicated US–Mexico lane aimed at lowering the cost and complexity of shipping between the two markets.

In its initial rollout, Cainiao opened cross-border service from the United States to Mexico, focusing on the most active e-commerce regions in the US West and reaching 99% of Mexico, according to the company. Cainiao says the product is priced at about 60% of the current market average, positioning it as a value offering intended to “break” the high-cost barrier that often limits US–Mexico cross-border parcel flows for platforms and merchants.

Operationally, Cainiao is differentiating the new lane by leaning on its self-operated networks in both the United States and Mexico, rather than a fully outsourced model. The company says it controls key logistics nodes including sorting, line-haul transfer, and last-mile delivery, arguing that tighter operational control improves stability, transparency, and end-to-end parcel management across the route.

The United States and Mexico are deeply integrated through supply chains. Indeed, even amid tariff threats and trade conflict narratives, Mexico remains the United States’ top trade partner, according to the latest US Census Bureau trade highlights “Top Trading Partners from October 2025” year-to-date totals, Mexico ranked No. 1 by total US goods trade at US$731.2 billion, with US$283.2 billion in US exports to Mexico and US$448.0 billion in US imports from Mexico. 

The same Census table shows Mexico essentially tied with Canada as a US export destination year-to-date, with Canada at US$283.8 billion versus Mexico at US$283.2 billion. A CSIS analysis published in late 2025 notes that since 2020, Mexico has remained the United States’ fastest-growing, most stable export destination.

Cainiao is also tying its cross-border network expansion to a wider push in logistics digitization and automation. “We expect 2026 to be a breakout year for logistics technology. As we continue to deepen our business in China, we will also scale in both emerging markets and key mature markets-including Japan, South Korea, the United States, and Europe-supported by an expanding global delivery and after-sales service network,” says Bi Jianghua, Vice President, Cainiao, pointing to rising demand from retailers to upgrade networks and manage costs as competition intensifies.

Cainiao says its logistics technology products are already used in 27 countries and regions and it has supported more than 800 collaboration projects globally.