Alibaba Group will merge its food delivery service Ele.me with its online travel platform Fliggy into its main e-commerce operations to focus on consumer-centric strategies because of intense domestic competition and slowing demand.
The company announced this consolidation as part of its broader restructuring plan to enhance operational efficiency and boost user engagement. The company has moved away from its previous segmented corporate structure to implement tighter service integration which it calls a “strategic upgrade.”
The economic slowdown has persisted due to China’s property crisis and the changing U.S. trade policies. The market has shown decreased interest from consumers while Alibaba faces price competition and margin reduction from its competitors JD.com and PDD Holdings.
The two services will operate under the main e-commerce unit of Alibaba to achieve better management and platform coordination. The company advances its instant retail strategy by focusing on one-hour delivery services to satisfy modern consumer demands.
The company plans to maintain its business structure changes to provide consumers with better and more efficient experiences.
