Alibaba to merge travel and food units into core E-commerce

Alibaba said Monday it will merge its food delivery service Ele.me and travel platform Fliggy into its main e-commerce business as part of a broader restructuring plan.

The move comes as the company shifts toward becoming a more consumer-focused platform.

The reorganization is part of efforts to improve efficiency and respond to rising competition in China’s e-commerce market. The company said it will optimize business models and structure from the user’s point of view to improve consumer experience.

Alibaba and its rivals are competing in a tight market shaped by weaker consumer spending due to China’s property slowdown and global trade tensions.

Major e-commerce platforms in China are also competing in the fast-growing “instant retail” segment, where goods are delivered within 30 to 60 minutes.

Alibaba called the integration a “strategic upgrade” as it continues to adjust to changing market conditions and consumer habits.