Alibaba Group Holding’s competition with Meituan is expanding from instant commerce into the bricks-and-mortar market, as the Hangzhou-based tech conglomerate prepares to offer discounted in-store dining vouchers to consumers on the mainland.
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That new initiative is expected to start on Saturday in selected districts in Shenzhen, Shanghai and Jiaxing, a city in eastern Zhejiang province, according to a report on Friday by local media outlet LatePost, which cited unnamed sources.
Alibaba, owner of the South China Morning Post, did not immediately reply to a request for comment on Friday.
The company’s dining vouchers – under instant commerce unit Taobao Shangou and Ele.me – would enable consumers to buy meals at a discount in various eateries, which would initially cover restaurant chains, tea shops and bakeries ahead of the programme’s roll-out across more cities, according to the report.
The business model would replicate a business that Meituan started when it merged with the Yelp-like Dianping platform in 2015. ByteDance-owned short video platform Douyin established a similar service on the mainland in 2020.
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Alibaba’s latest programme reflects the opportunity to reach more consumers, as the launch comes 10 days ahead of China’s “golden week” holiday, which kicks off on October 1, when tens of millions of Chinese travel and boost spending.