Alibaba has launched a membership program that covers services across its online marketplaces, food delivery, and travel booking platforms.

The move brings together 22 businesses, including Taobao, Tmall, Alipay, Ele.me, Freshippo, Fliggy, and Alibaba Cloud.

Alibaba and Ant Group, both co-founded by Jack Ma, said they will work together to improve conditions for millions of delivery riders, including offering new uniforms and setting up funds for education and healthcare support for riders and their families.

This marks the first time since 2020 that all major Alibaba brands are collaborating on a campaign.

Alibaba merged its domestic and international ecommerce operations late last year and rolled out the membership program earlier this month.

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🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Food delivery competition has escalated into a costly war of attrition

Alibaba’s unified approach against Meituan represents the latest phase in a rivalry that has intensified dramatically since 2018, when Ele.me first launched a “summer war” with a $450 million investment to challenge Meituan’s market leadership1.

The financial stakes have grown significantly, with companies now burning approximately $4 billion on discounts in a single quarter, and Goldman Sachs estimating Alibaba could face losses of $5.7 billion in food delivery over the next year2.

This escalation has pushed Meituan’s own leadership to describe the current boom as “mostly a bubble,” highlighting how unsustainable subsidies have distorted the market dynamics3.

The competition has reached such intensity that it contributed to Alibaba’s $100 billion market value decline since March, as investors question the long-term viability of these aggressive spending strategies2.

2️⃣ Worker welfare has emerged as a new competitive battlefield

Alibaba’s promise to improve delivery rider conditions reflects how worker benefits have become a strategic differentiator in China’s gig economy, with all major platforms now competing on welfare offerings rather than just service quality.

This shift follows government pressure and public scrutiny, leading Ele.me, Meituan, and JD.com to announce social insurance coverage for their combined army of delivery workers serving approximately 200 million gig workers4.

The competitive aspect is evident in the specifics: JD.com became the first to offer comprehensive social insurance, while Ele.me invested over $27.5 million in rider welfare programs, and Meituan committed to expanding coverage starting in Q2 20254.

These welfare investments represent a fundamental change from the previous decade when platforms competed primarily through consumer subsidies and merchant incentives, signaling that sustainable competitive advantages now require addressing the entire ecosystem including worker satisfaction.

Recent Alibaba developments

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