Alibaba Local Services Upgraded Lifestyle from Better Services

WANG Lei, President of Alibaba Local Services Company

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September 23-24, 2019 Hangzhou, China

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Alibaba Local Consumer Services Business Model

01 02 Alibaba Digital Economy Synergy

03Post Acquisition Progress

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Alibaba Local Consumer Services Business Model

01 02 Alibaba Digital Economy Synergy

03Post Acquisition Progress

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Restaurant

Ele.me Koubei

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Enabling Local Merchants

Koubei

Smart Restaurants Merchants

POS, Payment (Alipay)

Users

Ele.me

Merchants Fulfillment Platform

Enabling SaaS, Financial Services

Supply Chain

Users 2B/2C

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Mini App

Group buying

Food Delivery

Online Marketing

Pre-ordering

Supply Chain and Fulfillment Platform

Smart Restaurants

POSPayment

Users

Merchants

Marketplace Decentralized Digital Operation

Customer Profile

Data Insight

Customer Relationship Management

Membership Management

Precision Marketing

Multi-channels

Data Collection

Enabling SaaSFinancial Services

Alibaba Local Consumer Services Operating System

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Alibaba Local Consumer Services Business Model

01 02 Alibaba Digital Economy Synergy

03Post Acquisition Progress

May 2018 September 2018 October 2018 June 2019

Ele.me Acquisition

Operation Organization

Upgrade

Establishment of Alibaba

Local Consumer Services

Fengniao Logistics

Expansion

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Progress Well on Track

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40%Alibaba Local Consumer Services

GMV YoY Growth

（1）

（2）

（3）

南海诸岛

Annual Active Consumers

Notes: 1. Annual Active Consumers, deduped between Ele.me, Xingxuan and Koubei for the twelve months ended June 30, 2019. 2. Alibaba Local Consumer Services GMV YoY growth, including Ele.me, Xingxuan and Koubei, for the twelve months ended June 30, 2019 vs June 30, 2018. 3. Deduped between Ele.me and Koubei as of June 2019.

245 million 100+Directly Managed Cities

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Improvement on Efficiency

Decrease of Delivery Cost per OrderSlight Increase of Commission per OrderRapid Growth of GMV

Note:Ele.me quarterly data from Q1 FY2019 to Q1 FY2020.

Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 Q1 FY2020

Rational Control of Subsidy Cost per Order

Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 Q1 FY2020 Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 Q1 FY2020 Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 Q1 FY2020

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Market Potential in Less Developed Areas

Cities in Less Developed Areas with More than 1 Million Urban Population

that Ele.me Directly Managed

Cities in Less Developed Areas with More than 1 Million Urban Population

70+130+ 60Cities in Less Developed Areas

with More than 1 Million Urban Population that Ele.me has Not Directly Managed

Addressable Markets Penetrated Markets Potential Markets

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Alibaba Local Consumer Services Business Model

01 02 Alibaba Digital Economy Synergy

03Post Acquisition Progress

28%Ele.me orders placed through Alipay mobile app

38%Ele.me new consumers come from Alipay mobile app

Mini App User Traffic Circulation Recommendation Feeds Precision Marketing

Engage With More Consumers through Alipay

Note:Data from Q1 FY2020.

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Taobao Live StreamSuper Brand Day

Comprehensive Cooperation in Marketing and New Scenarios

GMV of most popular meal set6.4+ million RMB

New users to online stores 93%

Live stream viewers6+ million

Taobao Search ResultsRecommendation Feeds

Increase Exposure through Multiple Channels

Note:Data from KFC Branding Day on August 11, 2019.

Build New Local Consumer Services on Taobao

Case Study

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Amap Search Results Nearby Location Details 633 millionAverage Amap Page Views per Day

by Ele.me Users and Riders

Real-time Location Information

Path Planning  Ability

Note:Data for June, 2019.

Creating Smart Local Communities on Amap

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Strategic PartnershipsLocal Consumer Services

Groceries

On-demand Food

Health and Medicine

Flowers

Runner

Fengniao Logistics Expansion

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Daily Logistic Orders from non-Ele.me platform

Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

of Starbucks’ China sales from Starbucks Delivers

100 3,000+ Average delivery time

Notes: 1. As of September 19, 2019, which marks the first anniversary of cooperation between Starbucks Corporation and Alibaba Group. 2. For the June Quarter, 2019. 3. Average delivery time for Starbucks Delivers from March 2019 to August 2019.

Increase Market Coverage and Customer Penetration

Cities（1） Stores（1）

（2）

（3）

6% 18minsCase Study

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Digitalized Solutions for Local Merchants to Upgrade Operational Efficiency Koubei Ele.me

Focus on Goods

Mobile Apps Scenarios

Products

Focus on Store Focus on Customer

Profile Members

Targeted Marketing

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