Alibaba is building a synergistic "integrated e-commerce ecosystem" through four key drivers to improve profitability in food delivery and instant shopping businesses, while leveraging Amap's traffic advantages to penetrate the local services market.

On September 12, JPMorgan Chase stated in its latest research report that recent investor meeting minutes show Alibaba management outlined a clear path to narrowing losses through operational efficiency optimization, making the firm more optimistic about the pace of investment loss reduction in Alibaba's upcoming quarters.

JPMorgan analysts indicated that the Chinese e-commerce giant is integrating multiple businesses including e-commerce, food delivery, and travel through loyalty programs such as the "Taobao Premium Membership System," achieving cross-scenario consumption synergy to build an "integrated e-commerce ecosystem," while leveraging Amap's 170 million daily active users advantage to enter the store services market.

The research report also noted that Alibaba management emphasized improving execution through organizational streamlining and mobilizing internal resources around core strategies. Under the leadership of senior executives like Jiang Fan, the company is cultivating entrepreneurial leadership talent and achieving agile responses through management rejuvenation.

JPMorgan maintains an "Overweight" rating on Alibaba, with a Hong Kong stock target price of HK$165 and a US stock target price of $170. The firm's analysts believe that streamlined operations, strong financial resources, and clear instant shopping and cloud strategies will drive sustainable double-digit profit growth.

**Four Drivers for Food Delivery and Instant Shopping: Transformation Path from Loss to Profit**

The research report stated that Alibaba management detailed four key drivers for profit margin improvement in food delivery and instant shopping businesses during the investor meeting.

First is user structure optimization, focusing on increasing the proportion of repeat customers to enhance retention rates and lifetime value, supported by strong new user retention rates.

Order structure optimization serves as the second major driver. By introducing more Tmall brand merchants to the instant shopping platform, the company aims to reduce the GMV proportion of low-margin categories like bubble tea.

According to investor meeting minutes published by JPMorgan, bubble tea categories currently account for less than 30% of order volume, as Alibaba transitions toward high-value product diversification.

Fulfillment efficiency improvement relies on a network of 2 million delivery riders and high urban density to optimize delivery costs.

Monetization capability enhancement leverages the large user participation attracted by the instant shopping platform, achieving commercialization through rapidly growing traffic.

JPMorgan believes this systematic improvement strategy aims to narrow losses in this business over the coming quarters through operational efficiency optimization, providing new momentum for Alibaba's overall profit growth.

**"Taobao Premium Membership System": Building Cross-Business Synergy Ecosystem Loop**

JPMorgan noted that Alibaba's "Taobao Premium Membership System" serves as a fundamental loyalty program covering multiple domestic businesses including e-commerce, food delivery, and travel. Users accumulate "Taobao Score" through cross-scenario consumption and interactions, determining their membership levels.

The core value of this system lies in allowing consumers' daily behaviors throughout the Alibaba ecosystem to accumulate levels and unlock high-value rewards. From e-commerce and local life services to travel, every consumer transaction contributes to level advancement.

Achieving higher premium membership levels is key to unlocking significant discounts for 88VIP premium membership qualifications, serving as a pathway to broader exclusive privileges.

JPMorgan believes this design enables Alibaba to flexibly adjust investment intensity in individual businesses, as natural synergy between businesses can be achieved through multi-dimensional consumer value propositions.

Meeting minutes showed that Alibaba management emphasized that while individual businesses like food delivery may face investment pressure, the ecosystem's overall synergistic growth strategy allows the company to maintain flexibility in competition.

**Amap: 170 Million Daily Active Users Leveraging Local Services Market**

The research report stated that Amap, as Alibaba's mobile mapping service with 170 million daily active users and 1 billion monthly active users, serves as a natural entry point into China's store and local services market.

Since mobile maps sit at the top of the local services traffic funnel, and the local services industry profit pool is much smaller than e-commerce, this business will require lower investment intensity than food delivery and instant shopping businesses.

Amap's monetization opportunities include advertising, coupons, and integrated services such as ride-hailing. In 2025, Amap has accelerated this strategy through AI feature upgrades, using artificial intelligence technology to enhance user experience and service efficiency.

This strategic positioning enables Amap to secure an important traffic entry point in the local services market with relatively low investment intensity. Compared to asset-heavy businesses like food delivery, Amap's store strategy offers cost-efficiency advantages.

JPMorgan believes that Amap's user base and technological advantages provide Alibaba with differentiated competitive advantages in the local life services sector, potentially becoming a new growth engine.

**Organizational Transformation: Partnership Reduction by Nearly Half, Management Rejuvenation**

Alibaba management emphasized improving execution through organizational streamlining and mobilizing internal resources around core strategies. Under the leadership of senior executives like Jiang Fan, Alibaba is cultivating entrepreneurial leadership talent and rekindling organizational vitality.

The number of partners in fiscal 2025 was reduced by nearly half, reflecting Alibaba's "simplification" management philosophy. Senior management rejuvenation and middle management team renewal aim to improve decision-making efficiency and execution capability.

JPMorgan stated that this organizational structure adjustment supports the group's agile response in competitive environments. By streamlining decision-making chains, Alibaba can respond more rapidly to market changes and consumer demands.

According to JPMorgan analysts' observations, this series of organizational changes helps Alibaba maintain strategic execution consistency and efficiency in the process of building an "integrated e-commerce ecosystem."