Alibaba announced that it will retire the Ele.me brand and merge its delivery operations into the Taobao Instant Commerce platform, a move that marks a significant consolidation of the company’s instant‑commerce services. The announcement, made on November 19, 2025, follows a series of earlier reports that the rebranding was already underway in early November, with the official app transition slated for December 1.
The decision to retire Ele.me is driven by a strategic effort to unify Alibaba’s fragmented delivery brands under the globally recognized Taobao umbrella. By leveraging Taobao’s 300 million monthly active users and its extensive e‑commerce ecosystem, Alibaba aims to broaden the scope of instant‑commerce deliveries beyond food to include groceries, household items, and other consumer goods. This expansion is intended to capture a larger share of China’s rapidly growing instant‑commerce market, where competitors such as Meituan and JD.com dominate.
Alibaba’s investment in instant‑commerce has been substantial. In July 2025, the company announced a RMB 50 billion (≈US$7 billion) subsidy program to accelerate user and merchant engagement. The program has helped Taobao Instant Commerce reach more than 120 million daily orders in August 2025, a milestone that reflects the platform’s rapid adoption across multiple product categories.
While the rebranding and investment have driven strong growth, they have also put pressure on profitability. Alibaba’s domestic e‑commerce adjusted EBITDA has declined in recent quarters as the company pours capital into instant‑commerce infrastructure and subsidies. The rebranding is therefore part of a broader “New Retail” strategy that seeks to balance short‑term margin compression with long‑term market‑share gains.
Ele.me’s history underscores the strategic necessity of this move. Founded in 2008 and acquired by Alibaba in 2018 for US$9.5 billion, Ele.me had been losing market share to Meituan, which holds a dominant position in food delivery. By integrating Ele.me’s delivery network into Taobao Instant Commerce, Alibaba can combine Ele.me’s logistics expertise with Taobao’s consumer base, creating operational synergies and a more cohesive brand experience.
The phased transition also reflects regulatory considerations. China’s antitrust regulators have scrutinized the intense price wars and subsidy spending in the instant‑delivery sector. Consolidating under a single brand reduces regulatory risk by presenting a clearer, more streamlined business model.
Overall, Alibaba’s retirement of Ele.me and the consolidation under Taobao Instant Commerce represent a calculated effort to strengthen its instant‑commerce footprint, leverage scale, and compete more effectively against Meituan and JD.com while navigating profitability challenges and regulatory scrutiny.
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