Alibaba folds travel app into core business amid strategic overhaul

Travel app Fliggy merges with Alibaba’s main e-commerce unit as the company streamlines operations and refocuses on user-centric services in a tightening market

Alibaba announced on Monday it will merge its food delivery service Ele.me and online travel agency Fliggy into its core e-commerce division. The move is part of a broader effort to streamline operations and adapt to shifting consumer behavior in China, where weakened economic conditions and a prolonged property crisis are impacting spending. With domestic rivals locked in a price war and focusing heavily on rapid delivery, Alibaba aims to transform itself from a traditional e-commerce company into a more agile, consumer-centric platform.

Key takeaways

• Platform integration: Ele.me and Fliggy will be merged into Alibaba’s core e-commerce business as part of a strategic reorganization.
• Economic context: Chinese consumer spending is down due to the real estate crisis and trade tensions with the U.S.
• Market pressures: Alibaba faces fierce competition from rivals pushing price cuts and expanding into "instant retail" with 30–60 minute delivery promises.
• Strategic shift: Alibaba positions the reorganization as a move toward becoming a broader, consumer-focused platform beyond traditional online shopping.
• User-centric goal: The company plans to optimize its operations and structure to enhance user experiences and increase service quality.

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