Alibaba Group is launching a $1.5 billion bid to acquire Chinese grocery delivery firm Pupu, significantly exceeding Sun Art Retail’s previous offer of $600 million. This acquisition attempt comes amid escalating competition with rivals Meituan and JD.com in China’s local commerce sector.
Pupu, based in Fujian, generates over RMB 30 billion annually and offers a rapid 30-minute delivery service across major provinces. Alibaba’s proposal reflects its strategic shift towards enhancing supply chain capabilities in response to competitive pressures. The company’s quick commerce revenues surged 57% year-over-year in Q4 fiscal 2026, totaling RMB 19.99 billion, though they saw a substantial drop in adjusted EBITA, down 84% to RMB 5.1 billion.
While Alibaba’s stock recently dipped 6.5% amidst regulatory scrutiny from China’s State Administration for Market Regulation regarding false advertising, the outcome of the Pupu acquisition could significantly impact Alibaba’s long-term market position and profitability as it navigates an increasingly challenged commercial landscape.
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