TLDRs;
- Amap’s new AI ranking feature attracted 40 million users on its first day, challenging Meituan’s Dianping.
- Alibaba used over $140 million in subsidies to boost engagement with Amap Street Stars.
- Integration of navigation and recommendations strengthens Alibaba’s offline services ecosystem.
- Amap now reports 170 million daily users, vastly surpassing Dianping’s 30 million.
Alibaba’s mapping app, Amap, drew over 40 million users on the launch day of its AI-powered ranking service, “Amap Street Stars.”
The new feature recommends and ranks more than 1.6 million restaurants, hotels, and tourist destinations across China, combining sophisticated AI algorithms with user-friendly navigation.
The record-breaking user engagement illustrates both the power of Alibaba’s large existing audience and the growing appetite for AI-driven local recommendations. Analysts note that Amap’s daily active user base, now at 170 million, provides a significant advantage over rival review platform Meituan’s Dianping, which records just over 30 million daily users.
Aggressive Subsidies Fuel Adoption
Industry insiders point to Alibaba’s strategic financial backing as a key driver of early adoption. The company allocated more than $140 million in subsidies to incentivize user engagement and encourage spending at participating businesses.
This approach mirrors Alibaba’s historical tactics, where heavy initial investment helped scale new platforms and services before monetization.
“The launch of Amap Street Stars isn’t just about AI; it’s a calculated push to capture the offline services market,” said an analyst at JP Morgan.
By combining technology and financial incentives, Alibaba ensures rapid traction and user retention, placing the company in a favorable position against competitors like Meituan.
Challenging Market Leaders Strategically
Amap’s new feature represents Alibaba’s long-standing strategy of challenging dominant players through platform integration.
Instead of creating a standalone review app, Alibaba leverages its navigation tool to address a clear user pain point: switching between different apps for directions and recommendations. Local residents have noted the convenience.
“Previously, it was inconvenient to switch between apps for directions and reviews,” said Shi Pei, a Shanghai resident. “Now, everything is integrated in one place, making it seamless.”
This integration not only improves the user experience but also allows Alibaba to cross-sell other lifestyle and e-commerce services to its vast navigation user base, further solidifying its ecosystem.
Expanding Alibaba’s Offline Services Presence
Beyond the immediate user adoption, Amap Street Stars strengthens Alibaba’s offline commerce strategy. Analysts suggest the platform could become a key channel for local services, complementing the company’s e-commerce platform, Taobao.
The expansion into AI-powered rankings highlights Alibaba’s ambition to dominate not just online retail but the broader consumer services sector in China.
The launch also signals a broader trend in China’s instant commerce market, where major tech players increasingly use AI, integration, and financial incentives to capture attention and grow market share quickly. With Amap’s massive user base, Alibaba now has a competitive edge in shaping how millions of users discover and interact with local businesses daily.
