Alibaba's Instant Commerce Boosts E-commerce Growth, Wins Consumer Mindshare

Alibaba Group Holding has regained growth momentum in the domestic market through its instant commerce push, winning consumer mindshare and reporting robust earnings growth in Q2. The company's NY-listed shares jumped 13% to close at $135 after CEO Eddie Wu Yongming said it has succeeded in scaling up user growth and building consumer preference for its platform. Alibaba's instant commerce operation contributed to a 25% boost in monthly active consumers and a 20% increase in daily active users on the Taobao app.

Alibaba Group Holding has regained significant growth momentum in the domestic market, driven by its instant commerce push. The company's New York-listed shares surged by 13% to close at $135, following robust earnings growth in the June quarter. CEO Eddie Wu Yongming highlighted the company's success in scaling up user growth and building consumer mindshare, which reflects a strong preference for the Alibaba platform [1].

The instant commerce operation, particularly Taobao Instant Commerce launched in April, has been instrumental in this growth. It contributed to a 25% boost in monthly active consumers and a 20% increase in daily active users on the Taobao app in the first three weeks of August [2]. This initiative has met consumers' demand for on-demand delivery across various product categories, including food, groceries, electronics, and apparel.

Alibaba's domestic e-commerce business saw a 10% year-over-year revenue growth in the June quarter, reaching 140 billion yuan. However, adjusted EBITDA declined by 21% to 38.4 billion yuan, primarily due to fresh investments in instant commerce. The company's cloud computing unit also reported strong growth, with revenue increasing by 26% year-over-year to 33.4 billion yuan [3].

The company's strategic focus on consumption and AI + Cloud has delivered significant growth, with AI-related product revenue maintaining triple-digit growth for the eighth consecutive quarter. Alibaba's quick commerce business has also achieved key milestones, winning consumer mindshare and scaling operations [3].

Alibaba's commitment to strategic pillars such as instant commerce and AI initiatives is expected to drive long-term growth and capture historic opportunities in the evolving global e-commerce landscape. The company's quick commerce business is anticipated to generate an additional 1 trillion yuan in transactions over the next three years, creating over 1 million jobs [1].

References:
[1] https://www.scmp.com/tech/big-tech/article/3323775/alibaba-sees-strong-consumer-mindshare-reviving-e-commerce-momentum
[2] https://finance.yahoo.com/news/alibaba-sees-strong-consumer-mindshare-093000517.html
[3] https://www.ainvest.com/news/alibaba-group-taobao-instant-commerce-launched-april-drove-25-yoy-rise-taobao-app-monthly-active-users-2508/