Alibaba’s mapping app, Amap, is aggressively entering the local lifestyle services market, which Meituan has traditionally dominated. Amap’s new feature, “Street Stars,” leverages AI to rank and recommend restaurants, hotels, and tourist attractions to its 170 million daily active users. This strategic move positions Amap as a direct competitor to Meituan’s established platform, Dazhong Dianping. The launch is supported by a substantial 1 billion yuan ($140.43 million) subsidy program, offering users coupons for ride-hailing and in-store services. Initially, “Street Stars” will cover 300 cities and 1.6 million local business listings.
The expansion into local lifestyle services highlights the intensifying competition between Alibaba and Meituan within China’s “instant retail” sector. Both companies are heavily invested in this booming one-hour delivery market, engaging in a price war fueled by discounts and coupons. This competitive landscape has attracted increased regulatory attention, with authorities concerned about a potentially damaging downward price spiral amidst a weak Chinese economy characterized by low consumer confidence and job insecurity.
Meituan, in response to Amap’s challenge, announced its own 25 million yuan coupon initiative for takeaway services from highly-rated restaurants via its Dianping platform. This demonstrates the escalating battle for market share. Alibaba CEO Eddie Wu has publicly framed Amap’s AI-driven transformation as a key component of Alibaba’s broader strategy to build a “comprehensive consumption platform,” further solidifying the company’s ambition to dominate the sector.
However, this expansion strategy faces potential regulatory hurdles. Chinese authorities have already convened meetings with leading e-commerce and food delivery companies, signaling their concern about unsustainable price wars. The ongoing competitive pressure and regulatory scrutiny create a complex and uncertain future for both Alibaba and Meituan in the fiercely competitive Chinese market.
