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Alibaba shakes up its local consumer services business with a boost to navigation platform Amap as market competition intensifies

  • Alibaba is merging its Koubei restaurant review feature into navigation platform Amap
  • The firm’s local consumer services revenue increased 21 per cent year on year in the September quarter, driven by Amap’s strong order growth

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Amap, the navigation platform of Alibaba Group Holding, recorded more than 220 million daily active users in China during the country’s week-long National Day holiday last October. Photo: Handout
Tracy Quin ShanghaiandBen Jiangin Beijing
Alibaba Group Holding is consolidating certain operations at its local consumer services business segment, as the Chinese e-commerce giant repositions its resources to cope with increased competition in a vast mainland market that is projected to reach US$5 trillion by 2025.
Hangzhou-based Alibaba, owner of the South China Morning Post, has decided to merge its Koubei restaurant review feature into the Amap app, which provides mobile digital map, navigation and real-time traffic information, as well as a ride-hailing aggregator that competes with Didi Chuxing on the mainland.

This reorganisation, which was first reported by Chinese media 36kr on Monday, will see Zhang Liang, who is in charge of Koubei, report directly to Amap chief executive Liu Zhenfei, instead of local consumer services group head Yu Yongfu.

Alibaba did not immediately respond to a request for comment on Tuesday.

Alibaba Group Holding merged food and lifestyle arm Koubei with delivery unit Ele.me in 2018 to later form the foundation of the e-commerce giant’s local consumer services business segment. Photo: Handout
Alibaba Group Holding merged food and lifestyle arm Koubei with delivery unit Ele.me in 2018 to later form the foundation of the e-commerce giant’s local consumer services business segment. Photo: Handout
Formed in 2021, the local consumer services business segment of Alibaba includes food delivery unit Ele.me, online-to-offline integration service solution provider Taoxianda, Amap and online travel platform Fliggy.
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