Chongqing - On September 10, the day Alibaba marked its 26th anniversary, its mapping subsidiary Amap (Gaode) unveiled the world's first consumer ranking system based on user behavior. The "Gaode Street Rankings" list categorizes restaurants and shops based on real-world visits, signaling Alibaba's renewed push into offline retail and services.

Alibaba's Amap unveiled the world's first consumer ranking system based on user behavior on September 10, 2025. (Photo/Shi Daijun)

"GOAL IS TO GENUINELY REFLECT USERS' CHOICES"

The ranking system integrates different types of consumer behavior. Categories include the "Tire-Wear Ranking" for places users travel far to reach and the "Repeat Customer Ranking" for venues with high return visits. Other lists highlight local favorites, city-specific experiences, and small neighborhood shops with high customer ratings. Amap says the rankings update daily with dynamic data.

Amap CEO Guo Ning emphasized that the list would not be commercialized. "Authenticity is the core vitality of the rankings," Guo said. "The goal is to genuinely reflect users' choices. We believe improving consumer trust will boost confidence, allow businesses to focus on operations, and help the service industry develop more sustainably."

Although the September 10 launch was kept under tight secrecy, Alibaba's strategy of strengthening offline consumption has been building for years.

On August 29, Alibaba's e-commerce CEO Jiang Fan said Taobao Shangou, Alibaba's instant commerce service integrated into the Taobao app, had reached 150 million daily active users, with many showing demand for in-store services. He confirmed Alibaba was testing offline options in several cities.

Alibaba's involvement in this sector dates back to 2006, when it invested in Koubei, a local review and group-buying site. Koubei was later merged with Ele.me in 2018, but the results fell short of expectations. A turning point came in 2014, when Alibaba acquired Amap for $1.1 billion, making it central to its local services strategy. By 2023, Alibaba announced that all of its in-store business lines would be consolidated into Amap, which had already surpassed 120 million daily active users in 2022.

Alibaba's Local Services Group revenue grew 13% year-on-year in the third quarter of fiscal 2024, with total orders up more than 20%. In early 2025, Amap achieved profitability for the first time. The platform now covers over 7 million restaurants nationwide, handling 120 million service-related searches and 13 million daily navigation requests to offline businesses.

Alibaba's latest quarterly report, released August 29, showed instant retail revenue of 14.78 billion yuan ($2.08 billion) in the three months ending June 30, up 12% year-on-year, largely driven by Taobao Shangou.

The timing coincided with rival Meituan relaunching its Dianping "Premium Delivery" service, which uses AI to filter reviews and highlight highly rated restaurants. Meituan reported a second-quarter revenue of 91.8 billion yuan, up 11.7%, with in-store orders rising more than 40% and active merchants reaching record highs.

ALIBABA SEEKS TO STRENGTHEN ITS ONLINE MOAT

Zhang Yi, CEO and chief analyst of iiMedia Research, said Alibaba's move reflects two factors: the expansion of China's local services market and the slowdown of purely online business. "With Meituan's clear lead and Douyin (TikTok's Chinese version) also dividing the market, Alibaba is both defending its share and seeking to strengthen its online moat," Zhang said. He added that Amap's high-frequency traffic and platform advantages create promising synergy.

iiMedia Research's latest report forecasts that by 2025, China's online food delivery market will reach 1.75 trillion yuan, while the broader local services sector will surpass 2.5 trillion yuan. The report highlights the strong growth potential, attracting internet giants to compete aggressively in the space.

Beijing-based analyst Ma Jihua said deeper involvement in offline services helps Alibaba build a multi-layered ecosystem. "Directly, in-store services can channel traffic to e-commerce. In the long term, they enhance Alibaba's consumer data for future AI-driven opportunities," he explained.

Zhang emphasized that Alibaba's ecosystem—combining payments, e-commerce, and mapping—provides multiple entry points for users. Ma added that Alibaba's experience in AI and cloud computing offers a solid foundation for expanding business-to-business services, though he noted that Meituan's Dianping app still holds a strong advantage in consumer recognition.

Both companies are offering subsidies to attract users. On launch day, Amap announced a "Neighborhood Store Support Plan," pledging 200 million yuan in travel subsidies and 950 million yuan in consumption vouchers. Meituan said it would issue 25 million premium delivery vouchers and continue providing grants of up to 50,000 yuan to small restaurants.

Regulators recently cautioned platforms over subsidy practices, urging them to avoid unfair competition. Both Alibaba and Meituan pledged compliance.

Analysts argue that the rivalry could ultimately benefit consumers. "Competition will likely bring lower costs, more choice, and better service," Ma said. Zhang added that Alibaba could also leverage technology to create a more convenient experience, while consumers may benefit from targeted subsidies.