The battle for dominance in China’s instant retail sector is escalating. Taobao Instant Commerce, in partnership with food delivery service Ele.me, has reported that their combined daily order volume has surpassed 80 million. Of these, more than 13 million are non-food orders, while Meituan hit a new record of 120 million daily delivery orders.

Since its launch two months ago, Taobao Instant Commerce has seen considerable growth, with over 200 million daily active users. The platform’s market volume has increased from 100 million orders in May, indicating a rise in consumer adoption.

To enhance user engagement, Taobao Instant Commerce has announced a subsidy program valued at 50 billion yuan (approximately US$7 billion), which will directly benefit consumers and merchants over the next 12 months.

The aggressive strategies and record-breaking figures from both Alibaba’s and Meituan’s instant delivery platforms highlight the intense competition and massive potential within China’s quick commerce market.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Quick commerce represents China’s next e-commerce frontier

Taobao Shanguo’s rapid doubling of order volume (from 100 million to 200 million in just two months) exemplifies how quick commerce is reshaping Chinese retail expectations.

This growth follows a broader industry pattern where major platforms are heavily investing in rapid delivery capabilities. Alibaba alone is committing RMB 50 billion (approximately US$7 billion) in subsidies for instant delivery over the coming year1.

The strategic focus on quick commerce reflects shifting consumer preferences toward convenience and immediacy, particularly in urban markets where delivery speed has become a critical competitive differentiator.

This rapid scaling demonstrates Alibaba’s ability to leverage its established ecosystem to quickly enter and dominate new retail segments, a pattern previously seen with initiatives like Taobao Live and Tmall.

The quick commerce segment’s explosive growth aligns with China’s broader online retail trajectory, which is projected to reach $2.9 trillion by 2028, growing at a CAGR of 8.7%2.

2️⃣ Subsidy strategies reflect intensifying platform competition

Alibaba’s RMB 50 billion subsidy program for Taobao Shanguo represents a strategic response to intensifying competition from rivals like JD.com and Meituan in the quick commerce space1.

This investment follows established patterns in Chinese e-commerce, where platforms regularly deploy massive subsidies to capture market share and drive user engagement, a strategy previously demonstrated during events like Singles Day, which generated RMB 168.3 billion in sales for Tmall in 20173.

The substantial investment signals Alibaba’s commitment to defend its e-commerce dominance against competitors who have successfully challenged its market position in recent years, with Pinduoduo notably surpassing JD.com to become the second-largest player with a gross merchandise value of $597 billion2.

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