Alibaba logistics arm Cainiao Network has signed an agreement with DHL eCommerce Solutions as the two companies look to capitalise on Poland’s fast-growing e-commerce market, with plans to improve the country’s out-of-home delivery services.

DHL will purchase part of Cainiao’s subsidiary in Poland, and the two companies plan to invest 60 million euros to build one of the country’s largest networks of parcel lockers with user-friendly interfaces to cover the first and last mile.

Cainiao has been setting up its European hub in Liege and launching sorting centers in major markets in Europe over the last few years. The company operates parcel lockers in Poland, Spain, and France, whilst DHL has an extensive network in Europe, counting over 90,000 access points.

The transaction is subject to merger control clearance in jurisdictions of certain countries, with approvals expected in the coming months.

“Poland is one of the fastest growing e-commerce markets in Europe, expected to double by 2027, and up to 40 percent of consumers prefer to have shipments delivered to parcel lockers,” said Pablo Ciano, CEO of DHL eCommerce Solutions.

“By joining forces with Cainiao, we will strengthen our position as a trusted parcel provider and create an extensive network of state-of-the-art parcel lockers. In this way, we can provide our customers with an even greater shipping experience, on top of our existing to-door delivery options.”