Need for speed: Alibaba ramps up China instant commerce push with Cainiao and Tmall tie-up

Core Insights - Alibaba Group's logistics arm Cainiao and Tmall Supermarket are collaborating to enhance fulfillment infrastructure and accelerate deliveries in response to competition from JD.com and Meituan [1][4] - The partnership aims to bolster Taobao's Shangou instant commerce business, enabling delivery of groceries and consumer goods within four hours [2][6] - The initiative reflects Alibaba's significant investments in instant commerce to build a rapid-delivery network across 31 cities by January 2026 [1][5] Group 1 - Cainiao will establish or expand instant commerce warehouses for Tmall Supermarket, enhancing delivery capabilities [1] - The new warehouses are designed to store fast-moving goods closer to consumers, facilitating rapid order fulfillment [4][5] - The collaboration aims to improve supply chain efficiency, targeting an overall delivery efficiency increase of over 50% [6] Group 2 - Competitors like Meituan and JD.com are also expanding their logistics capabilities, with Meituan planning to increase its facilities from over 30,000 to 100,000 by 2027 [7] - JD.com is converting its physical stores into dual-use locations to enhance its grocery arm, 7Fresh [7]