(Reuters) - Alibaba on Monday said it will merge its food delivery platform Ele.me and online travel agency Fliggy into its core e-commerce business as the Chinese group streamlines operations amid intensifying competition.

A prolonged property crisis and the economic fallout of the U.S.'s evolving trade policy have dampened spending appetite of Chinese shoppers.

At the same time, Chinese e-commerce giants are engaged in a price war and have been aggressively expanding into "instant retail," which focuses on delivery times of just 30 to 60 minutes, to attract buyers.

The company said the reorganization was a “strategic upgrade” as it transitions from a traditional e-commerce company to a broader consumer-focused platform.

"Moving forward, the company will increasingly optimize its business models and organizational structures from the user's perspective to create richer, higher-quality consumer experiences," it said.