The new service promises steep discounts and 30-minute delivery across major categories, aiming to capture younger consumers and expand into lower-tier markets.
Alibaba has rolled out its one-hour delivery service “Taobao Flash” nationwide ahead of schedule, ramping up its push in China’s intensifying on-demand retail race. Originally set to launch May 6, the platform went live across the country on May 2 following strong uptake during its pilot run in more than 50 cities.
The upgraded service is backed by Alibaba’s food delivery arm Ele.me and offers aggressive consumer incentives, including free drinks, cash coupons, and discounted meals. The company said it aims to combine “e-commerce pricing with instant delivery,” with flash-sale deals across categories like food, groceries, pharmacy, electronics, and apparel now available within 30 minutes.
Within 48 hours of the launch, Ele.me’s delivery orders hit record highs in 13 cities. Sales of Cotti Coffee jumped tenfold in 24 hours, topping the platform’s coffee category. Over the May Day holiday, discounted drinks like milk tea and coffee surged more than 110% year-on-year, driven by flash deals and time-limited offers.
The accelerated launch comes as rivals like JD.com and Meituan ramp up investments in instant delivery, expanding from their core strengths in e-commerce and food, respectively. All three are vying for dominance in a sector expected to surpass 2 trillion yuan ($275 billion) by 2030, as consumers increasingly demand faster fulfillment and deeper discounts.
A Taobao Flash project spokesperson told The Beijing News: “Our current launch minimizes customer acquisition costs, freeing up resources for aggressive consumer subsidies.”
During the Labor Day holiday, Ele.me reported a sharp increase in late-night orders from travelers, with purchases between 10 p.m. and 5 a.m. accounting for more than 30% of total orders — 1.6 times higher than local users, according to company data.
Younger travelers fueled much of the demand, using 20% to 30% discounts to have snacks and drinks delivered from tourist hotspots to their hotels.
Industry analysts say Taobao’s launch has driven traffic and engagement well beyond initial expectations, helping brands reach more consumers — especially in lower-tier markets — by tapping into Ele.me’s delivery infrastructure and Taobao’s vast e-commerce network.
Internet analyst Ding Daoshi told domestic media that in recent years, growth in internet companies’ core businesses has slowed. “They must now seek new growth opportunities to scale their models — this not only serves a broader consumer base but also creates continued upward momentum for their own development,” Ding said.
(Header image: VCG)