Chinese e-commerce giant Alibaba has made a powerful entrance into the instant commerce sector, achieving a major milestone of 10 million daily orders just days after launching its new on-demand delivery service. This rapid success comes during one of Alibaba’s largest promotional campaigns and reflects its aggressive push into a highly competitive market segment. By leveraging its extensive e-commerce infrastructure, including vast logistics networks, advanced algorithms, and its food delivery arm Ele.me, Alibaba is reinforcing its dominance in the online shopping ecosystem amid growing rivalry.
Instant commerce, which refers to the fast delivery of a wide range of products such as food, electronics, and daily necessities—often within an hour—has recently become one of the most fiercely contested areas in China’s digital economy. The sector has seen increased competition from JD.com and Meituan, both of which have also been scaling up their delivery capabilities. JD.com, for instance, launched its “Miaosong” channel in 2024, initially focused on non-food items before expanding into food delivery. Meanwhile, Meituan, a leader in food delivery, introduced its “Shangou” feature, promising delivery of various goods in as little as 30 minutes.
Alibaba’s Taobao platform, the largest in China, is playing a central role in this new push. As part of its promotional strategy, Taobao is offering 100 million free drinks, including popular items like milk tea and coffee, to users of its newly launched Taobao Instant Commerce service. This initiative is expected to draw significant consumer attention and further drive adoption of the new service.
According to Hong Kong-based SDIC Securities, China’s instant commerce market is projected to grow by 29 percent in 2025, surpassing one trillion yuan (approximately US$137.5 billion). While still smaller than the food delivery market—which is expected to hit 1.65 trillion yuan—instant commerce is anticipated to overtake it in revenue over time.
With Alibaba’s entry, the instant commerce landscape is now dominated by a “triopoly” consisting of Alibaba, JD.com, and Meituan. This escalating competition has sparked tensions, with companies trading accusations of anticompetitive practices. Market reactions have been swift: Alibaba’s shares rose by 1 percent, Meituan saw a 4.5 percent increase, while JD.com’s shares dropped by 1.5 percent, reflecting the shifting dynamics in this fast-evolving sector.
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