Massive subsidies—Taobao Flash Shopping aims to capture consumer mindshare first.
On the eve of the May Day holiday, the instant retail war has arrived.
“Taobao Hourly Delivery” has been upgraded to “Taobao Flash Shopping,” launching in over 50 cities on April 30 before expanding nationwide on May 6. On the demand side, Taobao Flash Shopping and Ele.me are jointly subsidizing consumers with over 10 billion yuan in incentives. On the supply side, Ele.me’s offerings—including food delivery—are now fully integrated with Taobao Flash Shopping.
Alibaba’s ecosystem has been biding its time, and its entry now is clearly calculated:
- Marketing costs: The instant retail war has captured public attention. Alibaba’s entry capitalizes on this momentum, achieving a hot start with minimal effort.
- Consumer mindshare: Demand is focused on chain brands’ pricing. Alibaba’s heavy subsidies meet this need for quality at low prices, quickly establishing Taobao Flash Shopping as the go-to for instant retail.
- Timing: Golden Week holidays are peak dining periods. Launching nationwide during May Day maximizes impact.
Additionally, Taobao and Ele.me are differentiating their approach by prioritizing consumer benefits—over 10 billion yuan in subsidies are focused on perks like free orders and large discounts.
Taobao’s entry marks the true beginning of the integrated near-far retail era.
01 A Long-Planned Entry
When JD.com entered food delivery, it likely anticipated fierce competition from Meituan but probably didn’t expect to draw Alibaba’s “Taobao + Ele.me” combo into the fray.
The timing is strategic—public interest is peaking, subsidies from earlier battles are tapering off, and Taobao/Ele.me are entering with fresh resources to capture the demand generated by prior skirmishes.
Leveraging the food delivery war’s visibility reduces consumer education costs for “Taobao Flash Shopping,” accelerating its “fast delivery” positioning. Meanwhile, Ele.me’s mature merchant network and logistics allow Taobao to immediately compete via subsidies alone. Years of Alibaba’s internal ecosystem coordination are now paying dividends.
Taobao’s product/flow advantages plus Ele.me’s logistics create a formidable offensive. Analysts note this “combined arms” approach lets Taobao gain new users cheaply while Ele.me grows orders—”one investment, dual returns.”
02 Taobao Flash Shopping’s Differentiated Edge
With strengths in flow, supply, and fulfillment, Taobao Flash Shopping has no obvious weaknesses versus competitors.
Beyond Ele.me’s logistics, Taobao’s brand partnerships are key. Over 3 million stores already offer hourly delivery, including major brands like Apple (3,000+ stores), Decathlon, and fashion labels like JACK & JONES. Recent commission incentives attracted MO&Co, CHARLES & KEITH, and others.
Unique to Taobao is its apparel advantage—brands can livestream on Tmall while offering in-store coupons via Flash Shopping, enabling rapid try-on returns. This omnichannel approach is compelling for retailers.
03 Ele.me’s Well-Timed Offensive
Ele.me’s earlier silence was strategic. Its concurrent “10B+ Subsidies” campaign focuses on genuine perks like free meals, timed to leverage summer’s peak delivery season and its annual “Free Orders” promotion.
Recent热搜 (hot searches) like “Ele.me’s bigger discounts” reflect growing buzz. The company states: “Our goal remains making life easier and happier—no competition changes that.”
04 The True Retail War Begins
Ultimate victory requires integrated near-far capabilities. Taobao Flash Shopping’s breakthrough is unifying pricing across channels—e.g., Decathlon now charges the same for immediate vs. standard delivery.
Instant retail must transcend “speed” to expand categories. Only when brands unify inventory/pricing across channels can the model scale. This demands deep platform-merchant collaboration—overcoming internal silos between e-commerce and O2O teams.
Early results are promising: Decathlon’s cycling/outdoor gear sales grew 200%+ via Taobao, with some items up 450%. The upgrade to Flash Shopping aims to grow partnerships from 20 to 200 major chains.
As branded goods dominate instant retail, China’s true retail revolution begins.
