Alibaba Integrates Ele.me and Fliggy into Core E-Commerce Division Amid Strategic Restructuring

On June 23, Alibaba Group (9988.HK) revealed plans to integrate Ele.me and Fliggy into its primary e-commerce operations. The decision is part of a broader strategic overhaul intended to reposition the company as a more consumer-centric platform, moving beyond its traditional e-commerce roots.

This restructuring comes as China’s retail landscape undergoes significant pressure. A prolonged property sector downturn and the economic impact of shifting U.S. trade policies have weakened consumer confidence and reduced discretionary spending across the country. In response, major Chinese tech firms, including Alibaba, are ramping up their participation in the growing “instant retail” segment, which emphasizes ultra-fast delivery—often within 30 to 60 minutes—to capture and retain customer interest.

The company described the merger as a "strategic upgrade" that reflects its goal of simplifying business models and aligning more closely with consumer expectations. According to Alibaba, this transformation will involve reconfiguring internal structures to deliver more integrated, higher-quality services across multiple sectors, including food delivery, travel, and retail.

Alibaba has faced mounting competition from rivals like JD.com and Pinduoduo, both of which have aggressively pursued price-cutting strategies and localized delivery models. The consolidation of Ele.me and Fliggy is seen as a way to leverage Alibaba’s scale and technology more efficiently, while reducing redundancies and sharpening its market position.

The announcement is the latest in a series of structural reforms following Alibaba’s March 2023 decision to split into six independently operated business units, an effort aimed at increasing agility and improving financial transparency (Alibaba Group Press Release, 2023; Reuters, 2025).