Han Liu, the former CEO and logistics head of Ele.me, is under investigation by Shanghai police for alleged corruption tied to the company’s supply chain operations.

The probe follows an internal review by Ele.me, which uncovered evidence of misconduct and voluntarily reported it to the authorities. The company confirmed that additional individuals have also been summoned for questioning.

Han joined Alibaba in 2019 after working at JD.com and its logistics arm. In March 2024, he was promoted to CEO of Ele.me following a major leadership reshuffle at Alibaba’s Local Services Group.

In February 2025, Wu Zeming, the CTO of Alibaba and chairman of its food delivery branch Ele.me, has been appointed CEO, while Han stepped down to oversaw its delivery service Fengniao.

🔗 Source: Caixin

🧠 Food for thought

1️⃣ Corporate corruption incidents have significant business consequences beyond legal penalties

Corruption scandals typically result in multi-dimensional damage to organizations, extending far beyond initial legal consequences.

Major corporate corruption cases often lead to substantial financial penalties, with companies like Siemens paying $1.4 billion for bribery schemes across multiple countries 1.

These incidents frequently trigger leadership overhauls and operational restructuring, as seen in cases like GlaxoSmithKline, which faced a $490 million fine for bribing doctors in China and subsequently implemented significant organizational changes 1.

Beyond financial penalties, corruption investigations create market uncertainty, as demonstrated by regulatory scrutiny that led to market value losses for involved companies 2.

Reputational damage can persist long after legal proceedings conclude, affecting stakeholder trust and potentially hampering business operations in competitive markets.

2️⃣ China’s food delivery sector faces intensifying competitive and regulatory pressures

The Chinese food delivery market has become increasingly competitive, with Ele.me reporting positive financial results for six consecutive quarters while still working toward profitability in a challenging environment 3.

Regulatory authorities have demonstrated active oversight of the sector, with five government agencies summoning major players including Ele.me to address competition regulations and ensure compliance with e-commerce, competition, and food safety laws 2.

The industry has seen significant leadership reshuffles, with Ele.me undergoing management changes aimed at improving operational efficiency and addressing market challenges 3.

Recent Ele.me developments