Alibaba Launches Membership, Escalates Meituan Rivalry

 

Alibaba has launched a new membership program unifying services across 22 of its businesses, including Taobao, Tmall, Alipay, Ele.me, Freshippo, Fliggy, and Alibaba Cloud.

This is the first time since 2020 that all major Alibaba brands have collaborated under one initiative. The program reflects Alibaba’s effort to strengthen its ecosystem following the merger of its domestic and international e-commerce units late last year. The initiative is also part of Alibaba’s broader strategy to challenge Meituan’s dominance in China’s on-demand economy. Since 2018, Alibaba’s food delivery arm Ele.me has directly competed with Meituan, sparking subsidy wars that have escalated to nearly $4 billion in discounts per quarter.

Key Highlights

• Alibaba unites 22 platforms with a new membership program
• Competition with Meituan escalates amid $4B quarterly subsidies
• Rider welfare becomes a key battleground in China’s gig economy

Goldman Sachs estimates Alibaba could face $5.7 billion in food delivery losses over the next year, fueling investor concerns and contributing to a $100 billion market value decline since March.

Beyond consumer-facing competition, Alibaba and Ant Group are placing greater emphasis on delivery rider welfare. Plans include new uniforms, education and healthcare funds for riders and their families, and broader social insurance coverage. This aligns with growing government pressure and public scrutiny around gig worker conditions. Rivals have also stepped up welfare commitments: JD.com pioneered comprehensive rider social insurance, Ele.me invested over $27.5 million in welfare programs, and Meituan pledged to expand coverage in 2025.

Also Read: Why Meituan's Price War in China May Linger

Analysts see this shift as a turning point in China’s gig economy, where platforms are competing not only through discounts and service quality, but also through worker well-being and ecosystem sustainability.