Alibaba’s mapping app Amap is shifting from its traditional role in navigation to enter the local lifestyle space, challenging rival Meituan by launching its own ranking system for restaurants, hotels, and tourist destinations.
Both Alibaba and Meituan are key players in China’s competitive technology sector, currently locked in a battle for dominance in the “instant retail” market. This fast-growing segment is built around one-hour delivery services, where companies are offering heavy discounts and coupons to attract customers. The intense price competition has drawn scrutiny from regulators concerned about unsustainable pricing practices, especially as weak property markets and job insecurity continue to weigh on consumer confidence.
Amap’s new service, announced on Wednesday, will be called “Street Stars”. It will use artificial intelligence algorithms to create rankings of popular destinations for its 170 million daily active users. To promote the launch, Amap has allocated 1 billion yuan (140.43 million US dollars) in subsidies, offering coupons for ride-hailing and in-store services. The service will initially cover 300 cities and include 1.6 million listings for local businesses.
For years, Chinese consumers have relied on Meituan’s Dazhong Dianping platform for restaurant reviews, bookings, and related services. In response to Amap’s announcement, Meituan revealed on its official WeChat account that it would revamp Dianping’s takeaway service, introducing 25 million consumption coupons from highly rated restaurants.
On a recent post-earnings call, Alibaba Group CEO Eddie Wu highlighted the transformation of Amap through artificial intelligence, describing it as a “new gateway for future lifestyle services” and part of Alibaba’s larger vision to create a “comprehensive consumption platform”.
However, questions remain over the potential role of regulators. Chinese authorities have already called in leading e-commerce and food delivery companies for multiple discussions, warning against excessive competition. The continuation of aggressive price wars may clash with government messaging discouraging a race-to-the-bottom strategy.
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