Core Viewpoint - The article emphasizes the commitment of Taobao and Ele.me to resist malicious competition and promote ecological win-win cooperation, outlining four key areas of focus for future operations [1] Group 1: Key Initiatives - The companies will plan and distribute subsidies based on consumer and merchant needs [1] - There is a strong commitment to resist malicious competition, with a focus on eliminating unfair practices and stimulating consumption potential in emerging markets [1] - Continuous improvement of service quality is a priority, including the enhancement of diverse consumption scenarios and the efficiency of the delivery network [1] - The companies aim to foster ecological win-win cooperation by establishing a feedback system that addresses core issues such as merchant participation, product quality, and rider rights [1]

Core Viewpoint - Taobao and Ele.me jointly announced their commitment to resist malicious competition and promote ecological win-win cooperation, outlining four key initiatives to enhance consumer and merchant experiences [2]. Group 1: Key Initiatives - The companies will plan and distribute subsidies based on consumer and merchant needs [2]. - They will actively eliminate unfair competition practices and avoid irrational promotional activities such as large-scale "0 yuan purchase" campaigns to stimulate consumption potential and innovation in emerging markets [2]. - Continuous improvement of service quality will be prioritized, including the provision of diverse consumption scenarios, a wider range of products, and upgrades to the efficiency of the delivery network [2]. - A "listening-consulting-optimizing-feedback" system has been established to address core issues such as merchant participation, product quality, and rider rights, with multiple discussion meetings being held across various locations [2].

Core Viewpoint - The market regulatory authority has called for stricter compliance with e-commerce laws and regulations among major platforms like Ele.me, Meituan, and JD.com to promote a healthy and sustainable development of the food service industry [1] Group 1 - The State Administration for Market Regulation has conducted discussions with Ele.me, Meituan, and JD.com [1] - The platforms are required to adhere to the E-commerce Law, Anti-Unfair Competition Law, and Food Safety Law of the People's Republic of China [1] - The aim is to ensure responsible promotional practices and rational competition among platforms, benefiting consumers, merchants, delivery riders, and the platforms themselves [1]

Group 1 - The core point of the articles highlights the significant increase in daily orders for Taobao Flash Purchase, exceeding 80 million within two months, which has positively impacted rider income, with an average increase of 50% compared to May [1][2] - To enhance rider support during summer, Ele.me has implemented various measures including order rewards, increased benefits for new riders, weather subsidies, and flexible delivery time matching [1][2] - The number of cities with daily orders surpassing one million has doubled in the past week due to the introduction of subsidies, indicating a strong consumer demand [1] Group 2 - Since June, Ele.me has initiated a high-temperature care program to protect rider rights, providing weather subsidies during extreme conditions and implementing measures to reduce outdoor exposure [2] - The company has introduced a fatigue prevention mechanism set to launch in August 2024, which includes a four-hour fatigue warning and mandatory rest periods for riders [2] - Ele.me's Blue Fund has expanded its coverage this summer to include severe heatstroke cases, ensuring riders have comprehensive support [2]

Core 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]

Core Viewpoint - The article discusses the competitive strategies of Ele.me in the ongoing food delivery war, emphasizing that Ele.me is strategically choosing when and how to engage in aggressive promotions rather than simply following competitors' actions [3][4][11]. Group 1: Ele.me's Strategy - Ele.me has started issuing large coupons, making products cheaper than supermarket prices, indicating a shift to a more aggressive marketing strategy [7][14]. - The company previously refrained from aggressive competition while rivals were heavily engaged in price wars, allowing Ele.me to benefit from the situation without incurring costs [11][13]. - The current strategy aims to force competitors to incur losses by increasing their promotional efforts, thereby shifting the focus back to pricing [14][15]. Group 2: Market Dynamics - The competitive landscape has changed, with Ele.me seizing the opportunity to act now that competitors are showing signs of fatigue in their promotional efforts [14][15]. - The article highlights that the logic of competition has shifted from profit margins to relative losses, where Ele.me is willing to incur losses if it can cause greater losses for its competitors [15]. - Ele.me's historical resilience in past market battles is noted, suggesting that the company is not intimidated by the prospect of increased competition [15]. Group 3: Consumer Impact - The article emphasizes that consumers should focus on protecting their wallets by taking advantage of the ongoing competition and choosing the cheapest options available [17]. - It encourages consumers to support the competition among delivery services, as this will ultimately benefit them through better deals and promotions [17].

Core Viewpoint - The competition in the Chinese food delivery market is intensifying, with major players like Ele.me, JD.com, and Meituan ramping up their efforts through substantial subsidies and support for delivery personnel [1][3][4]. Group 1: Competitive Landscape - Ele.me has launched a subsidy program exceeding 10 billion yuan to attract users [1]. - JD.com has initiated a series of measures including zero commission for new merchants, social insurance for full-time delivery riders, and a 10 billion yuan subsidy program [3]. - Meituan plans to invest 100 billion yuan over the next three years to subsidize consumers and support merchants [4]. Group 2: Market Potential - The online food delivery user base in China is projected to reach 545 million by 2024, accounting for about 50% of internet users [6]. - The market size of China's online food delivery industry is expected to grow to 1.6357 trillion yuan in 2024, with a year-on-year increase of 7.2% [6]. - By 2027, the market size is anticipated to expand further to 1.9567 trillion yuan, indicating significant growth potential in the sector [6]. Group 3: Industry Dynamics - The competition among major players is expected to enhance the overall market vitality and stimulate growth in the restaurant sector [6]. - While short-term subsidies can drive order volume, long-term success will depend on factors such as delivery efficiency, merchant supply, and user retention [7]. - The competitive landscape is likely to stabilize over time, leading to a healthier market ecosystem and the potential for long-term value realization for platforms [7].