Alibaba said to launch cross-service membership program

Alibaba is preparing to launch a new membership program that will cover several of its services, including online shopping, food delivery, and travel booking, according to Chinese media reports and a source familiar with the matter.

The initiative will allow Taobao members to access benefits across other Alibaba platforms such as Ele.me, Fliggy, and Freshippo.

This move follows the recent merger of Ele.me and Fliggy into Alibaba’s ecommerce group, which is led by Jiang Fan.

Reports indicate that Alibaba also plans to update its 88VIP membership scheme, which previously offered perks like free return delivery.

Alibaba has not officially commented on the launch.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Cross-platform loyalty programs reflect China’s massive loyalty market growth

Alibaba’s expansion of its membership benefits across multiple services aligns with China’s rapidly growing loyalty program market, which is projected to reach $32.66 billion by 2029 with a 13.6% annual growth rate 1.

The company’s existing 88VIP program already demonstrates the potential of this approach, having surpassed 50 million members and establishing itself among China’s top loyalty programs 2 3.

This growth occurs within China’s $2 trillion retail market, where loyalty programs are tracking over 17 million customer events, indicating the scale of consumer engagement with these platforms 3.

Subscription-based loyalty programs like Alibaba’s 88VIP are specifically gaining traction as companies recognize their effectiveness in creating comprehensive consumer ecosystems rather than isolated service offerings 1.

2️⃣ Membership programs drive higher customer value in competitive markets

The strategic importance of Alibaba’s membership expansion becomes clear when examining how paid memberships generate higher repeat purchase rates and average transaction values compared to free alternatives 4.

In China’s intensely competitive e-commerce landscape, memberships have become essential tools for retaining valuable users rather than simply acquiring new ones 4.

This shift represents a broader industry movement away from price-based competition toward service-based differentiation, where platforms enhance membership benefits to create sustainable competitive advantages 4.