BABA(US:BABA) Sou Hu Cai Jing·2025-06-23 20:01Core Viewpoint - Alibaba Group's CEO announced the merger of Ele.me and Fliggy into Alibaba's China e-commerce business group, marking a strategic upgrade towards becoming a comprehensive consumer platform focused on enhancing user experience [2][8]. Group 1: Company Developments - Ele.me started in 2008 from a college dormitory, evolving from a simple phone ordering service to a major player in local life services, achieving significant milestones such as daily orders exceeding 1,000 by October 2009 [3][4]. - In 2018, Alibaba acquired Ele.me for $9.5 billion, integrating it into its new retail strategy and enhancing its capabilities in online food delivery and local services [4]. - Fliggy, originally Alibaba Travel, was launched in 2014 to compete in the online travel market, leveraging Alibaba's resources to establish a strong market presence [5][6]. Group 2: Strategic Implications - The merger aims to create a complete consumer service system, combining Ele.me's local services, Fliggy's travel offerings, and Alibaba's e-commerce foundation to provide a seamless consumer experience across various sectors [8][9]. - The integration is expected to enhance the synergy between instant retail and traditional e-commerce, as evidenced by the successful collaboration between Taobao's flash purchase service and Ele.me, which saw over 40 million orders in less than a month [9][10]. - The merger will facilitate the fusion of travel and e-commerce resources, allowing for cross-marketing opportunities and the creation of diverse consumer scenarios [10]. Group 3: Management and Leadership - Jiang Fan, who has a proven track record in e-commerce, will lead the integration, leveraging his experience to ensure effective resource coordination and team collaboration during the merger [6][7]. - The management structure will maintain a corporate governance model for Ele.me and Fliggy, ensuring operational flexibility while aligning with Alibaba's strategic goals [11]. - This strategic move is part of Alibaba's broader plan to enhance its competitive edge in the consumer market, optimizing resource allocation and improving operational efficiency [11].