Alibaba Group has announced a major restructuring, integrating its food delivery service Ele.me and online travel agency Fliggy into its core e-commerce business. The move is part of a broader strategy to streamline operations and enhance competitiveness in China’s rapidly evolving digital marketplace. Alibaba’s CEO Eddie Wu Yongming described the reorganization as a “strategic upgrade”, transitioning the company from a traditional e-commerce platform to a comprehensive consumer-focused ecosystem.

The integration aims to align business goals and optimize operations, allowing Alibaba to leverage its vast e-commerce infrastructure to enhance food delivery and travel services. Ele.me, acquired by Alibaba in 2018, was previously part of the company’s local services division, while Fliggy operated independently. Under the new structure, both platforms will maintain their corporate identities but work closely with Alibaba’s China e-commerce division, which oversees Taobao and Tmall.

The restructuring comes amid intensifying competition in China’s on-demand delivery and online travel industries. Rival companies like JD.com and Meituan have aggressively expanded their instant commerce services, offering ultra-fast deliveries to attract consumers. Alibaba has responded by launching Taobao Instant Commerce, a rapid-delivery feature that integrates Ele.me’s logistics network. Within two months, daily orders surpassed 60 million, demonstrating the growing demand for quick commerce.

Similarly, the online travel sector is facing increased competition, with JD.com recently introducing zero commission fees for hotels joining its JD Hotel membership program. Alibaba’s integration of Fliggy into its e-commerce ecosystem is expected to strengthen its market position and provide seamless travel booking experiences for users. Alibaba’s restructuring reflects its long-term vision of creating a unified consumer platform that combines e-commerce, food delivery, and travel services. By consolidating these businesses, the company aims to boost efficiency, reduce costs, and enhance user experience. While Ele.me and Fliggy will continue operating under their respective brands, their business strategies and execution will be closely aligned with Alibaba’s core e-commerce operations. This move is expected to drive synergies, improve cross-platform engagement, and strengthen Alibaba’s competitive edge in China’s digital economy.