As we are entering the final months of 2025, a question remains for investors, analysts and ecosystem stakeholders following China’s expensive quick commerce war: Will Alibaba, which has the largest financial power in this contest, continue the war?
A few days ago, in an interview with Chinese media, Wu Zeming (Alibaba nick name: Fan Yu), CEO of ele.me, Alibaba’s food delivery and quick commerce unit, gave some clues.
We have summarized the key points of Fan Yu’s interview here. Please note that the views expressed here are not those of Momentum Works:
1. Taobao Instashopping’s daily order volume has stabilized at around 80 million, with monthly active buyers reaching 300 million — a remarkable scale that underscores strong consumer stickiness and repeat demand.
2. In August alone, Taobao Instashopping drove a 20% year-on-year increase in Taobao’s daily active users (DAU) and a 25% rise in monthly active users (MAU). The business has also demonstrated clear synergy within Alibaba’s ecosystem — since its launch, Tmall Supermarket’s half-day delivery orders have increased by 50% year-on-year, while Hema’s online orders have surged by 70%.
3. These different business segments are increasingly interconnected through shared user bases and membership systems. A notable example is the 88VIP program, where Taobao Instashopping offers dining and instant retail benefits, while Alitrip provides travel-related privileges for the same cohort of users.
Similarly, Taobao’s Super Membership system links together more cross-business benefits, effectively deconstructing user needs across multiple consumption scenarios.
Vertically, this strengthens user-level integration, while horizontally, there is significant room for operational, technological, and data collaboration across business lines. Through both vertical and horizontal synergies, Taobao Instashopping is deepening the overall cohesion of the Alibaba ecosystem.
4. Taobao Instashopping is rapidly onboarding a wide range of brand merchants. Beyond restaurants and convenience retail, many traditional e-commerce brands are now moving swiftly to establish a presence on the platform.
5. In addition to instant delivery and standard e-commerce logistics, Taobao Instashopping is now introducing a “4-hour delivery” model — a hybrid fulfillment solution particularly suited for traditional e-commerce brands seeking faster, more flexible delivery options.
6. For now, Taobao Instashopping continues to position itself primarily as a platform for food delivery and instant retail, rather than an all-encompassing local services “super business.” That broader, consumption-wide role remains with Taobao itself. Instashopping’s current focus is firmly on to-home services, combining convenience, speed, and an expanding assortment of products.
