Alibaba will merge its food delivery platform Ele.me and its online travel agency Fliggy into its core e-commerce business, local media reports said on Monday.
Alibaba (HK:9988) NYSE:BABA) CEO Eddie Wu reportedly announced the move in an internal email to employees, with Wu describing the move as part of Alibaba’s strategic move from an e-commerce company to a big consumer platform.
Both Ele.me and Fliggy will maintain their current leadership.
The move comes just days after Ele.me logistics head and former CEO Han Liu was hit with a police probe over alleged corruption tied to the company’s supply chain operations.
The allegations stemmed from an internal review by Ele.me, which had voluntarily reported instances of misconduct to the Shanghai police.
Alibaba’s restructuring comes as the e-commerce giant looks to further secure its market share in China, amid soft consumer spending trends and growing headwinds from U.S. trade tariffs.
The company is also seeking to further its artificial intelligence prospects.