Alibaba Group (BABA) to Combine Ele.me and Fliggy to its Core E-Commerce Business

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Best and Cheap Stocks to Buy Now. On June 23, the Wall Street Journal reported Alibaba Group Holding Limited (NYSE:BABA) is combining its food-delivery platform Ele.me and online travel services platform Fliggy to its core e-commerce business.

This is a strategic move that realigns the company’s resources towards its core revenue driver and develops a stronger delivery network. Alibaba Group Holding Limited (NYSE:BABA) has been facing serious competition from competitors like JD.com and Meituan, this move indicates that the company is fortifying its delivery network. Following the folding, the CEO of Ele.me and Fliggy will directly report to Jiang Fan, who leads Alibaba’s E-commerce Business Group.

The company in April also launched a new rapid delivery feature on its shopping platform, Taobao. “This marks a strategic upgrade as we evolve from an e-commerce platform into broader consumer-focused platform,” said Eddie Wu Yongming, Chief Executive of Alibaba Group Holding Limited (NYSE:BABA).

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.