Ele.me, Fliggy Integrate into Taobao Tmall: Alibaba’s Pivot to Consumer Platform

In a strategic move signaling a broader shift, Alibaba Group CEO Eddie Wu announced via an internal memo that Ele.me and Fliggy are merging into the China Digital Commerce Group, effective immediately. This consolidation marks a significant step towards the company’s evolution into a comprehensive consumer platform, according to the company.

Wu emphasized that Ele.me and Fliggy will maintain their independent operational structures, but their business decisions and execution will align with the goals of the China Digital Commerce Group, fostering a unified approach across the organization.

This integration, Wu noted, is a strategic upgrade positioning Alibaba as a major player in the broader consumer market.

The merging of these entities – with their established expertise and resources – aims to create a more robust consumer service ecosystem within Alibaba. This synergy is expected to yield significant benefits, particularly in the realm of instant retail.

Specifically, Taobao Flash Sale and Ele.me will work more closely together to integrate resources.

Taobao Flash Sale has rapidly gained traction, with over 40 million daily orders less than a month after its launch. The platform has expanded its product offerings beyond food, boasting a 75% share of non-beverage items and experiencing significantly higher-than-expected growth in non-food orders.

Notably, Taobao Flash Sale maintains a high order fulfillment rate, boasting a 97% on-time delivery record.

During this year’s Tmall 618 shopping festival, Taobao Flash Sale experienced remarkable growth in its retail categories, with numerous brands across sectors like 3C digital, apparel, fast-moving consumer goods, and sports/outdoor achieving record sales. This further supports the strategy of the group.

Industry analysts suggest that the demonstrated success of Taobao Flash Sale over the last two months has solidified Alibaba’s resolve to increase investment and integrate resources, making moves expected to shake up retail industry.