BABA(US:BABA) Feng Huang Wang·2026-01-05 00:59Core Insights - Alibaba Group is set to launch a service that helps restaurants utilize AI to showcase their in-store environment, aiming to compete with Meituan in the food delivery sector [1] - The new feature from Alibaba's mapping and local services division, Amap, will allow restaurants to generate 3D images by simply uploading videos or photos, leveraging the Tongyi Wanxiang visual generation model [1] - Alibaba plans to offer this technology for free to select merchants for a trial period, as part of its broader AI strategy to integrate AI across all its businesses [1] Industry Context - Chinese companies are increasingly exploring AI to enhance existing operations and enter new markets, with Amap's initiative indicating Alibaba's intent to expand in areas dominated by Meituan [1] - Meituan currently leads the local services market, including food delivery, reviews, and restaurant reservations, while Alibaba has faced challenges from smaller competitors in recent years [1] - To counter competition from Meituan and JD.com, Alibaba is investing hundreds of billions of yuan in incentives and subsidies for its popular online services by 2025, amidst a "three-way competition" that is squeezing industry profit margins [1]