Alibaba’s mapping app, Amap, is shifting its focus from navigation to local lifestyle services, challenging rival Meituan by launching a new ranking feature for restaurants, hotels, and tourist spots named “Street Stars.” This move is part of an intense competition in China’s “instant retail” sector, where major tech companies are vying for market share by offering aggressive discounts and coupons. As consumer sentiment declines due to low property prices and job instability, regulators express concern over the resultant price wars. Amap plans to use AI algorithms to rank over 1.6 million local listings, targeting 170 million daily active users. To attract users, Amap has allocated 1 billion yuan ($140 million) for subsidies, enhancing its appeal as a comprehensive consumption platform. However, potential regulatory hurdles loom, as authorities have previously engaged e-commerce firms regarding detrimental price wars. This strategic pivot positions Amap for growth in China’s evolving digital marketplace.
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