Finally figured out the logic behind this delivery battle. Alibaba opened up the previously untapped sinking market through tea beverage delivery, effectively prying open a moat that was originally held by Meituan and Pinduoduo in the sinking market. No wonder they are spending so much money on the delivery battle; they are all about incremental growth.

The specific logic is tea beverage delivery subsidies -> increase in delivery order volume -> more delivery merchants joining -> user order retention -> flash purchase orders.

From an overall perspective, the 50 billion subsidy from Taobao may not necessarily be a loss. It is important to note that Ele.me has long been dominated by Meituan, holding less than 30% market share, and now both sides are at a 64-36 split. Overall, the 50 billion subsidy has gained access to a sinking market that previously required hundreds of billions to conquer, breaking the deadlock where Meituan was continually eating away at delivery capacity and market share, and revitalizing Alibaba's struggling local market.

Now, three ordinary craftsmen can match one Zhuge Liang, revitalizing existing assets while also creating incremental business and increasing Taobao's daily active users.