Chinese e-commerce giant Alibaba (BABA) has decided to merge its food delivery unit, Ele.me, and its travel platform, Fliggy, into its main e-commerce division. The move is meant to streamline operations and reduce overlap across platforms. Both Ele.me and Fliggy will now report to the same team that runs Taobao and Tmall— Alibaba’s main online shopping platforms.
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The company said this will help improve service speed and build stronger links across apps. It will also help cut costs and allow teams to share tech and data more easily. Alibaba CEO Eddie Wu called it a “strategic upgrade” and said Alibaba is shifting from simple e-commerce to wider consumer services.
Building One Platform for Daily Life
The change comes at a time when Alibaba is facing fierce competition at home. Also, growth has slowed, and shoppers now have more choices than ever. With pressure rising, Alibaba is working to simplify its operational structure and keep users close to its key platforms.
The company bought Ele.me in 2018 to expand its reach in local services. Now, Ele.me has been added to the main e-commerce unit and placed under Taobao’s “instant retail” tab. This lets users order food or daily items from nearby shops in less time. The goal is to meet rising demand for fast delivery. By linking Ele.me’s wide network to its main apps, Alibaba hopes to speed up service and keep users from switching to other platforms.
Meanwhile, Fliggy, its travel unit, is also moving into the same group. This will allow users to book trips through Alibaba’s main shopping apps—without switching to a separate site. It also gives buyers a smoother way to browse, shop, and plan in one place.
Together, these moves show that Alibaba is taking strong steps to stay ahead of the competition. Instead of running many separate units, it now aims to build one strong, flexible platform. The company is betting that speed, ease, and better service will help it stay ahead in a market that is moving fast and getting tougher.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain highly bullish about Alibaba’s stock trajectory. With 12 unanimous Buy ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $166 implies about 47% upside potential from current levels.
