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Alibaba merges food delivery, travel units in instant retail push

Alibaba Group will merge its food delivery platform Ele.me and online travel platform Fliggy into its China e-commerce business group, as it rolls back a grand restructuring plan and emphasizes rapid fulfillment of orders, CEO Eddie Wu announced in an internal letter today. “This marks a strategic upgrade as we transition from an e-commerce platform to a broader consumer platform,” Wu said. The merger comes as Ele.me faces scrutiny over the arrest of former CEO Han Liu, a 37-year-old being investigated by Shanghai police for alleged corruption related to the company’s supply chain. Alibaba acquired Ele.me in 2018, while Fliggy has been Alibaba’s travel service arm since 2010. Both platforms have separate apps, with Ele.me now available under Taobao’s “instant retail” section.

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