Alibaba (BABA) is intensifying its competition in China’s local services sector with its mapping app, Amap, introducing the “Street Stars” feature. This new addition ranks restaurants, hotels, and tourist attractions, challenging Meituan (HK:3690) and its well-known Dianping platform. Amap, boasting 170 million daily active users, will launch Street Stars across 300 cities, covering 1.6 million listings, utilizing AI algorithms for rankings. To promote this feature, Alibaba is allocating 1 billion yuan ($140 million) for consumer subsidies on ride-hailing and in-store services. The rivalry escalates as Meituan counters with 25 million consumption coupons for its revamped services, highlighting the competitive “instant retail” market. Alibaba CEO Eddie Wu emphasized that AI is central to Amap’s strategy, aiming to integrate e-commerce and local services into a comprehensive platform. Analysts are optimistic about BABA’s outlook, with a Strong Buy consensus rating and a price target of $163.99, suggesting an 11.48% upside.
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