Alibaba to merge food delivery, travel agency platforms into core E-commerce business
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Alibaba to merge food delivery, travel agency platforms into core E-commerce business
Alibaba said it will merge its food delivery platform Ele.me and online travel agency Fliggy into its core e-commerce business. A prolonged property crisis and the economic fallout of the U.S.’s evolving trade policy have dampened spending appetite of Chinese shoppers.
June 23 (Reuters) – Alibaba (9988.HK) , opens new tab on Monday said it will merge its food delivery platform Ele.me and online travel agency Fliggy into its core e-commerce business as the Chinese group streamlines operations amid intensifying competition.
A prolonged property crisis and the economic fallout of the U.S.’s evolving trade policy have dampened spending appetite of Chinese shoppers.
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At the same time, Chinese e-commerce giants are engaged in a price war and have been aggressively expanding into “instant retail,” which focuses on delivery times of just 30 to 60 minutes, to attract buyers.
The company said the reorganization was a “strategic upgrade” as it transitions from a traditional e-commerce company to a broader consumer-focused platform.
“Moving forward, the company will increasingly optimize its business models and organizational structures from the user’s perspective to create richer, higher-quality consumer experiences,” it said.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid
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