Alibaba Launches 'Instant Commerce' Rapid-Delivery To Compete With Chinese E-Commerce Rivals

Alibaba Group Holding Ltd. BABA launched a new rapid-delivery feature on its Taobao shopping platform on Wednesday to compete in China's fast-growing on-demand delivery market against rivals like JD.com Inc. JD and Meituan. 

The new “instant commerce” tab appeared on Taobao's homepage in dozens of Chinese cities. It allows users to order a wide variety of products, including food, apparel, and footwear, and receive their purchases in under an hour.

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According to a Wall Street Journal report, Alibaba confirmed the rollout of the rapid-delivery service, which leverages its food delivery arm Ele.me to fulfill orders, and plans to expand the service throughout China by May 6.

The rapid-delivery service is a significant step in Alibaba's strategy to integrate its online marketplaces with its delivery network and comes as competition heats up in China's on-demand delivery sector. 

JD.com, for example, is aggressively expanding its own rapid delivery services and plans to hire tens of thousands of full-time riders. Meituan remains the dominant player with about two-thirds of China's food delivery market, according to the South China Morning Post. 

BABA Stock Price Action:  Shares of Alibaba Group were down slightly at $118.85 at the time of publication Wednesday, according to Benzinga Pro. 

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