Zheng Quan Zhi Xing·2025-06-24 06:09Core Viewpoint - Alibaba announced a significant organizational restructuring, merging Ele.me and Fliggy into its China e-commerce business group, in response to management issues highlighted by the investigation of former CEO Han Liu [1][2][3] Group 1: Organizational Changes - The restructuring aims to enhance information transparency and unify governance, addressing the governance gaps exposed by Han Liu's incident [3] - Ele.me and Fliggy will maintain a corporate management model but will align their business decisions with the centralized goals of the China e-commerce group [2][3] Group 2: Competitive Landscape - Ele.me faces intense competition from Meituan and JD.com, leading to aggressive strategies such as a 10 billion yuan subsidy plan and enhanced support for merchants [4][5] - Meituan maintains a dominant position in the food delivery market, with a market share of approximately 70%, while Ele.me struggles to diversify its consumer scenarios [5][6] Group 3: Financial Performance - Ele.me's local life group has not yet achieved profitability, with a revenue of 16.134 billion yuan in Q1 2025, reflecting a 10% year-on-year growth, but an adjusted EBITA loss of 2.316 billion yuan [6][7] - The financial pressures from large-scale subsidies have raised concerns about Ele.me's profitability [4][6] Group 4: Instant Retail Strategy - Ele.me is accelerating its instant retail business, collaborating with Taobao Flash Purchase to create a service model combining low prices and instant delivery [8][10] - The company plans to open 100,000 near-field brand flagship stores over the next three years, focusing on building a unique instant retail ecosystem [8] Group 5: Operational Challenges - Ele.me's delivery capabilities need improvement, particularly in its logistics network and algorithm scheduling, to compete effectively with Meituan's superior operational efficiency [9][10] - As of 2023, Ele.me has over 4 million active couriers, compared to Meituan's 7.45 million, impacting delivery quality and efficiency [9][10]