E-commerce powerhouse Alibaba Group has unveiled an ambitious campaign offering 100 million free beverages to customers, celebrating a major milestone in China’s rapidly expanding instant delivery market.
The company announced on Monday that its Taobao Instant Commerce service, launched just last week, has already reached 10 million daily orders during its latest promotional push.
This achievement comes mere days after rival JD[.]com reported hitting the same daily order volume with its own instant delivery service.
The free beverage campaign, featuring popular options like milk tea and coffee, aims to cement Alibaba’s position in the fiercely competitive “instant commerce” sector-where products ranging from meals to electronics arrive at customers’ doorsteps within an hour of ordering.
Industry analysts note that a three-way battle has emerged between Alibaba, JD[.]com, and food delivery giant Meituan, with each company deploying massive resources to capture market share.
The instant commerce market in China is projected to reach approximately 1 trillion yuan ($137.5 billion) this year, growing at 29% annually. While still smaller than traditional food delivery, experts anticipate it will eventually surpass that sector as consumer expectations for immediacy continue to rise.
JD[.]com pioneered its “Miaosong” instant service earlier this year, while Meituan countered with “Shangou” last month, promising deliveries within 30 minutes.
The competition has intensified to the point of public disputes, with JD[.]com and Meituan recently exchanging accusations of anticompetitive practices that reportedly affected their market valuations.
For consumers, however, the competition translates to unprecedented convenience and value.
Alibaba’s stock rose 1.2% following the announcement, while market reactions remained mixed for its competitors.
The company declined to comment on the total investment behind the promotion but said its commitment to maintaining its newly established foothold in the instant commerce landscape.
More about Taobao Instant Commerce service
Launched ahead of its original May 6 schedule on May 2, 2025, the initiative, also marketed as “Taobao Flash” or “Taobao Flash Buy,” promises deliveries of a vast array of goods—from groceries and electronics to apparel and cosmetics—to consumers’ doorsteps typically within an hour, and in some cases, as swiftly as 30 minutes.
This strategic move signals Alibaba’s aggressive push to capture a larger share of the rapidly expanding on-demand delivery sector and directly challenges established players like JD.com and Meituan.
The Taobao Instant Commerce service leverages the logistics prowess of Alibaba’s food delivery arm, Ele.me, which will handle rider dispatch and fulfillment. All of Taobao’s real-time retail operations are now consolidated under this new banner.
The upgraded service, which underwent a pilot phase in over 50 cities, aims to revitalize e-commerce growth and enhance user engagement on the Taobao platform, particularly as Chinese consumers increasingly prioritize speed, convenience, and value.
To entice users, Alibaba is deploying a strategy of significant consumer subsidies, including free items, substantial cash coupons, and deep discounts across a wide network of merchants. The company stated its ambition is to combine “e-commerce pricing with instant delivery.”
Early performance indicators suggest a strong market reception. Ele.me’s logistics orders saw a substantial boost, with 13 cities, including Nanning and Guiyang, hitting historical daily peaks within 48 hours of the full rollout.
Aggressive promotions have led to notable sales surges for participating merchants; for instance, sales of discounted Mixue milk tea jumped 200% year-on-year on the first day, and coffee brands like Cotti Coffee and Luckin Coffee experienced order increases of nearly tenfold.
Alibaba’s strategy appears to be an evolution of its “New Retail” vision, focusing on highly localized, on-demand channels that integrate existing brand partnerships with its sophisticated logistics network. Over 3 million stores had reportedly joined the platform since its earlier iteration, Taobao Hourly Delivery (Xiaoshida), was introduced in July 2024.
As Taobao Instant Commerce expands, its ability to sustain growth, manage the costs associated with subsidies, and effectively compete with entrenched rivals will be closely watched. For now, Alibaba has made a bold statement of intent, signaling its determination to be a leading force in China’s on-demand retail future.
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