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Asif Mohammad Sovon
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Asif Mohammad Sovon @asif_mohammad_sovon

Meet Asif Mohammad Sovon, an IT Assistant in the Bangladesh Air Force and a tech writer for Fileion....

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Jun 23, 2025

Alibaba Merges Ele.me and Fliggy into Core E-Commerce Unit in Strategic Move

Alibaba Merges Ele.me and Fliggy into Core E-Commerce Unit in Strategic Move Fileion.Com
Alibaba announced on June 23, 2025, that it will fully fold its food delivery arm Ele.me and online travel service Fliggy into its primary e-commerce division. The change aims to consolidate and strengthen its platform amid stiff competition and shifting consumer trends.

Integration to Boost Instant Retail

Alibaba said the move reflects a shift from traditional e-commerce to a broader, consumer-centric platform. The integration is expected to enhance its “instant retail” offerings—fast delivery of groceries, takeout, and everyday goods within 30–60 minutes.
According to a Taobao Instant Commerce spokesperson, the service partners with Ele.me’s delivery network to meet time-sensitive consumer needs in over 50 cities.

Why Alibaba Merged These Units

Several pressures prompted the shake-up:
  • Intense domestic rivalry: Competitors JD.com and Meituan are gaining ground in delivery and on-demand services.
  • Slowing consumer spending: A prolonged real estate slump and US trade policy adjustments have dampened Chinese consumer demand.
  • E-commerce price wars: Firms are boosting speed and bargaining power to retain shoppers.
Alibaba branded the reorganization a “strategic upgrade” to streamline operations, optimize business models, and improve customer experience.

Leadership and Operational Changes

Following the merger, Ele.me’s CEO Fan Yu and Fliggy’s CEO Zhuang Zhuoran will now report directly to Jiang Fan, head of Alibaba’s E-Commerce Business Group. This reflects Alibaba’s attempts to centralize control and reduce duplicate management.
Alibaba’s e-commerce group already covers Tmall, Taobao, global marketplaces, and more. Adding Ele.me and Fliggy reinforces its goal to create a cohesive ecosystem under unified leadership.

Industry Reactions

Analysts see Alibaba’s integration as a swift response to the growing importance of fast commerce in China. According to Chen Liteng from 100ec.cn, backing from Ele.me has propelled Taobao Flash Buy, which offers delivery services akin to Meituan’s, into a “triopoly” with JD and Meituan.
Meituan currently leads with around 70% market share in Chinese food delivery, and JD.com's daily orders are rising. Alibaba, with 60 million daily orders via Ele.me, aims to reclaim lost ground.

Benefits for Consumers

  • Faster delivery: Users ordering groceries or meals via Taobao will enjoy quicker turnarounds using Ele.me’s network.
  • Unified user interface: Orders across services will flow through a single app.
  • Enhanced promotions: Integrated platforms likely mean deeper discounts and bundled offers.

Potential Challenges

While integration promises efficiency, combining two large units may cause transitional issues. Cultural alignment, data system coherence, and customer service consistency will be key. Alibaba’s leadership must maintain daily operations and prevent drop-offs during the transition.

What Lies Ahead

  • Seamless integration: Both Ele.me and Fliggy will be upgraded under the e-commerce unit to create smooth cross-service workflows.
  • Expansion of fast commerce: Baidu reports that Alibaba plans to roll out rapid delivery services nationwide, combining services with local warehouses and stores.
  • Strategic focus on consumer experience: Alibaba’s leadership will continue optimizing operations with a user-first perspective.

Final Thoughts

Alibaba’s decision to merge Ele.me and Fliggy into its e-commerce core underscores its strategy to compete more effectively in fast-changing consumer markets. By consolidating services under one umbrella, it seeks to boost efficiency, leverage delivery networks, and stay ahead in the evolving instant retail space.
 
What do you think—will this integration make Alibaba more competitive, or could it disrupt services during the transition? Let us know in the comments!
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