Alibaba Group (HK:9988) (NYSE:BABA) plans to merge its food delivery platform Ele.me and travel service Fliggy into its primary e-commerce operations, as indicated in internal communications reported by Chinese media on Monday.

CEO Eddie Wu framed this decision as part of Alibaba’s broader shift from traditional e-commerce towards a comprehensive consumer ecosystem. The brands will maintain their current leadership, yet they will operate more closely within Alibaba’s main commerce framework.

Internal Changes Amid Competitive Pressures

This restructuring occurs amid reports that Ele.me’s former CEO and logistics chief Han Liu is currently under police investigation due to alleged supply chain corruption. This investigation stemmed from an internal audit conducted by Ele.me, which proactively contacted authorities.

Amidst Competitive Pressures and a Shift to AI

Alibaba’s decision arises within the context of:

• Intensifying domestic competition

• Softening consumer spending patterns in China

• Growing trade tensions due to U.S. tariffs

• A strategic pivot toward AI implementation and consumer data integration to ensure the business’s future viability

Monitor Alibaba’s Structural Changes in Real-Time

Stay on top of Alibaba’s ongoing financial restructuring, covering the impact on performance across segments, by utilizing Entreprenerdly.com. This platform offers insights into how Ele.me and Fliggy contribute to Alibaba’s overall revenue generation.