Copyright Benzinga
Alibaba Group Holding Ltd (NYSE:BABA) launched a 2 billion yuan ($281 million) investment on Friday to build a nationwide network of Taobao-branded convenience stores that will support its fast-growing instant commerce and on-demand delivery business, Taobao Shangou. Instead of opening its own physical outlets, Chinese e-commerce juggernaut Alibaba will upgrade existing neighborhood stores with digital infrastructure, branding, and supply chain technology. Hu Qiugen, general manager of Taobao Shangou told the SCMP that the company's tech-driven program will connect local retailers to Alibaba's ecosystem, integrating digital supply chain services from 1688.com, inventory replenishment through Aoxiang, and branding under the Taobao name. Also Read: Alibaba Bleeds Billions As Delivery Price War Erases $100 Billion In Market Value Alibaba plans to roll out the Taobao convenience store network in over 200 cities across mainland China, with the first stores already open in Hangzhou and Nanjing. CEO Eddie Wu Yongming remarked earlier this year that Taobao Shangou had achieved strong user growth and higher consumer preference over rivals such as Meituan (OTC:MPNGY) and JD.com Inc (NASDAQ:JD). Rapid Growth in Instant Commerce Taobao Shangou, accessible via the Taobao app, already has one-third of partner convenience stores operating 24/7. As of August, the service reached 300 million monthly active users and handled up to 120 million daily orders. China's instant commerce market has the potential to reach 2 trillion yuan, according to the Chinese Academy of International Trade and Economic Cooperation. Alibaba Stock Gains on AI and Cloud Momentum Alibaba stock gained over 101% year-to-date backed by its artificial intelligence (AI) push, along with its cloud computing division and international e-commerce growth. In August, Alibaba and its affiliate Ant Group launched a unified strategy to challenge Meituan in China's fast-growing instant commerce sector. For the first time since 2020, Alibaba integrated its core businesses, including Taobao, Tmall, Ele.me, Freshippo, Alipay, Alibaba Cloud, and Fliggy, to build a coordinated nationwide delivery network. In August, Alibaba's Ele.me briefly surpassed Meituan's daily delivery volume by offering free drinks with orders. Despite recent pledges with Meituan and JD.com to curb price wars, competition remains fierce as Alibaba doubles down on efficiency and scale. Price Action: BABA shares were trading lower by 1.07% to 168.60 premarket at last check Monday. Read Next: DeepSeek And Meituan Emerge As China’s Boldest AI Challengers Photo by Ascannio via Shutterstock
