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Alibaba Group’s Quick Commerce Strategy
Alibaba Group (NYSE: BABA) is intensifying its quick commerce efforts, aiming for ultra-fast delivery of groceries and daily essentials within 30 minutes to an hour. This strategy is responding to changing consumer preferences in urban China and aims to stave off competition from rivals Meituan and JD.com.
As of June 2025, China’s commerce revenue increased by 10%, but adjusted EBITDA for Alibaba fell 21%. Quick commerce operations are costly due to the need for localized distribution centers and dense logistics networks. Alibaba’s investments include platforms like Freshippo and Taocaicai to integrate speed and convenience into its ecosystem.
Factors for success will include user growth and engagement metrics, as well as narrowing losses in this segment. Despite profitability challenges, Alibaba’s established logistics network and integrated ecosystem may provide a competitive edge in the long term.
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