Alibaba Shores Up Food Delivery Network With Ele.me Takeover

Alibaba's acquisition of OMA aims to enhance its last-mile delivery network, giving it access to nearly 50% of China's food delivery market. This move supports Alibaba's retail strategy, including grocery delivery within 30 minutes. The acquisition helps consolidate resources and streamline operations. The market is highly competitive, with Meituan emerging as a major player, holding 40% market share. Despite Alibaba's potential upper hand, the business remains cash-intensive, and the acquisition is crucial for maintaining competitiveness.

What market share does Meituan currently occupy compared to Alibaba?

In what ways could the acquisition of Alamo benefit Alibaba's business?