Alibaba Group has announced the integration of its food delivery service Ele.me and online travel platform Fliggy into its principal e-commerce division. The move is part of a broader effort to streamline its operations in response to mounting market pressures and evolving consumer trends.
The company described the restructuring as a “strategic upgrade” as it accelerates its transformation from a conventional e-commerce entity into a comprehensive, consumer-focused platform.
“In the future, the company will increasingly optimise its business models and organisational structures from the user’s perspective to deliver richer, higher-quality consumer experiences,” Alibaba stated.
The consolidation comes at a time of economic uncertainty in China, fuelled by a protracted property crisis and ongoing repercussions from shifting United States trade policies. These macroeconomic challenges have tempered consumer spending across the country.
Meanwhile, competition within China’s e-commerce sector has intensified significantly. Industry players are locked in a sustained price war while simultaneously expanding into the fast-growing “instant retail” segment, which prioritises delivery speeds of 30 to 60 minutes in an effort to capture increasingly time-sensitive demand.
Alibaba’s restructuring reflects a strategic shift in the company’s long-term vision, aimed at leveraging synergies across its consumer-facing platforms to bolster engagement, efficiency, and market competitiveness.
-CNA
