Alibaba Group Holding (HKG:9988) is pledging an additional 1 billion yuan in incentives to boost traffic for Amap, its navigation and local services app, Bloomberg News reported Wednesday.

It will enhance Amap with AI-powered rankings for restaurants, hotels, and tourist sites while subsidizing consumer spending on car rides and dining, according to the report.

The push comes amid a costly three-way battle for Chinese consumers as Alibaba, JD.com (HKG:9618), and Meituan (HKG:3690) expand into meal delivery, quick commerce, and location-based services.

China's State Administration for Market Regulation this week reportedly urged food delivery firms to curb unfair competition and "malicious subsidies."

Alibaba previously pledged to invest 50 billion yuan in subsidies. E-commerce chief Jiang Fan defended the strategy last month, saying it had already driven user growth on Taobao, Bloomberg said.

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