Alibaba Intensifies Instant Delivery Fight with New Super Saturdays Campaign

Alibaba is intensifying its efforts in China's instant delivery market with a new 100-day "Super Saturdays" campaign under its Taobao Shangou brand. The campaign aims to boost daily order volumes and draw users away from rivals like Meituan and JD.com. Alibaba's deep pockets give it a firm footing to challenge rivals, but Meituan remains the market leader in scale and efficiency. Analysts remain optimistic about the long-term potential of the instant commerce sector in China, with the market projected to exceed 2 trillion yuan by 2030.

Alibaba Group Holding is intensifying its efforts in China's fiercely competitive instant delivery market with a new 100-day "Super Saturdays" campaign under its Taobao Shangou brand. The initiative aims to significantly boost daily order volumes and lure users away from rivals like Meituan and JD.com [1].

The "Super Saturdays" campaign offers consumers substantial subsidies, up to 188 Chinese yuan (approximately $26), on inexpensive items such as milk tea and breakfast. This strategic move comes amidst an escalating price war, with competitors employing equally aggressive tactics. Meituan, for instance, has been distributing complimentary milk tea through coupons, while JD.com has been offering nightly crayfish meals at a fixed, remarkably low price [2].

Alibaba's deep pockets give it a firm footing to challenge rivals, though Meituan remains the market leader in scale and efficiency. On July 11, Meituan's daily instant retail order volume reached an impressive 150 million, nearly double Taobao Shangou's 80 million [2].

Analysts remain optimistic about the long-term potential of the instant commerce sector in China. The Chinese Academy of International Trade and Economic Cooperation projects that China's instant commerce market is poised to exceed 2 trillion yuan ($279 billion) by 2030 [1].

However, a recent report from JPMorgan Chase issued a cautionary note, suggesting that the share prices of Alibaba, Meituan, and JD.com could remain under pressure for the next three to six months due to uncertainties surrounding profit margins and the sustainability of these extensive promotional campaigns [1].

References:
[1] https://www.benzinga.com/markets/tech/25/07/46437458/alibaba-intensifies-instant-delivery-fight-with-new-campaign
[2] https://www.scmp.com/tech/big-tech/article/3318125/alibaba-delivers-80-million-orders-1-day-amid-fierce-price-war-meituan-jdcom