Alibaba’s mapping app Amap is expanding beyond navigation by launching AI-driven rankings for restaurants, hotels, and tourist destinations, directly competing with Meituan’s Dianping platform in the lucrative local-lifestyle services market.
Key Details
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Street Stars Launch: Amap’s new feature, called Street Stars, ranks local businesses for its 170 million daily active users.
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Financial Incentives: Alibaba is offering 1 billion yuan ($140 million) in subsidies for coupons on ride-hailing and in-store services.
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Coverage: The service initially spans 300 cities and 1.6 million local business listings.
Competitive Landscape
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Meituan’s Response: Meituan countered with 25 million coupons tied to top-rated restaurants, signaling an intensifying rivalry.
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Instant Retail Battle: Both firms are locked in a discount-heavy price war in China’s booming one-hour delivery and lifestyle services segment.
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CEO Vision: Alibaba CEO Eddie Wu described Amap’s AI transformation as a step toward making it a “gateway for future lifestyle services.”
Regulatory Angle
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Scrutiny Rising: Chinese regulators have repeatedly warned against race-to-the-bottom pricing strategies and have summoned top firms for discussions.
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Economic Context: The competition comes as consumer spending remains weak due to housing market troubles and job insecurity, pushing platforms to rely on aggressive subsidies.
Implications
Amap’s pivot signals Alibaba’s intent to build a comprehensive consumption ecosystem, but regulators’ intervention could determine how far the subsidy-driven price war continues in China’s local services and lifestyle economy.
