---
title: "Alibaba FY2024 financial report interpretation: Local services annual revenue reaches 60 billion level."
type: "Topics"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/topics/21096796.md"
description: "People tend to overestimate the changes that can happen in one year and underestimate the changes that can occur in three years. This theorem also applies to corporate transformation. On the evening of May 14, $Alibaba(BABA.US) announced its financial results for the fourth quarter and full fiscal year 2024. The report showed that driven by the rapid growth of Ele.me and AutoNavi orders, the local life group's revenue increased by 19% year-on-year to RMB 59.802 billion. $BABA-W(09988.HK) Alibaba's local life business entered the era led by Yongfu Yu in fiscal year 2022. Now, three years have passed in the blink of an eye..."
datetime: "2024-05-15T06:55:41.000Z"
locales:
  - [en](https://longbridge.com/en/topics/21096796.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/21096796.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/21096796.md)
author: "[投资之路](https://longbridge.com/zh-CN/profiles/1262897.md)"
---

> 支持的语言: [English](https://longbridge.com/en/topics/21096796.md) | [繁體中文](https://longbridge.com/zh-HK/topics/21096796.md)


# Alibaba FY2024 financial report interpretation: Local services annual revenue reaches 60 billion level.

People often overestimate the changes that can happen in one year and underestimate the changes that can happen in three years. This theorem also applies to corporate transformation.

On the evening of May 14, $Alibaba(BABA.US) announced its financial results for the fourth quarter and full fiscal year of 2024. The financial report shows that driven by the rapid growth of Ele.me and Amap orders, the local living services group's revenue increased by 19% year-on-year to RMB 59.802 billion. $BABA-W(09988.HK)

Alibaba's local living services business entered the era led by Yu Yongfu in fiscal year 2022. Now, three years later, the local living services business has grown from a RMB 40 billion revenue scale to RMB 60 billion. What's even more remarkable is that the annual loss has also decreased from over RMB 20 billion to less than RMB 10 billion.

The financial report shows that with the rapid growth of business scale and continuous improvement in unit economics, the local living services group is optimizing operational efficiency on the basis of high-quality growth. Particularly influenced by the continuous improvement in Ele.me's unit economics, the local living services group's losses further narrowed: in the fiscal year, the group's losses decreased from RMB 13.148 billion last year to RMB 9.812 billion, a reduction of over 25% compared to the previous fiscal year.

It can be said that after three years, the local living services business has been completely transformed and reached the next level. It is expected that it will soon be able to contribute back to the group.

### **Strong Order Growth for Ele.me, the Most Stable Pillar of Local Living Services**

A closer look at Alibaba's financial report reveals that the two highest-priority core businesses—e-commerce and cloud computing—have reignited growth momentum, while overseas e-commerce, local living services, and Cainiao have stabilized on a healthy growth trajectory.

In this financial report, local living services made significant contributions to the group's growth and loss reduction. The post-pandemic recovery in consumption and tourism has brought new opportunities for this year's market competition in local living services, creating long-term development space for Ele.me and Amap.

This quarter, driven by the rapid growth of Ele.me and Amap orders, the local living services group's revenue reached RMB 14.628 billion, a 19% increase compared to RMB 12.340 billion in the same period of 2023. During the quarter, Ele.me continued to innovate consumer experiences and increase high-quality supply on the platform, leading to significant growth in active users and purchase frequency, which in turn drove strong order growth.

Public information shows that from January to March, various traditional festivals and shopping events were densely scheduled. Ele.me collaborated with high-quality merchants to launch diversified promotional activities such as the "New Year Shopping Festival," "Back-to-School Season," and "38 Shopping Festival," meeting various instant e-commerce needs. During the "New Year Shopping Festival," Ele.me partnered with merchants in multiple regions to offer users "takeout subscription cards" with multiple uses and discounts, which became a "digital New Year's gift" for young consumers and also drove strong growth for merchants. During this year's New Year Shopping Festival, orders for multiple categories on Ele.me more than doubled.

While transactions grew rapidly, local living services also continued to improve operational efficiency this quarter. The financial report shows that due to the continuous improvement in Ele.me's unit economics and the expansion of business scale, losses in the home delivery business further narrowed, accelerating the reduction of losses for the local living services group. During the quarter, the group's losses decreased from RMB 4.063 billion in the same period of 2023 to RMB 3.198 billion, a year-on-year reduction of 21.3%.

### **Instant Retail—The New Engine for Local Living Services**

According to the "Instant Retail Industry Development Report (2023)" released by the E-commerce Research Institute of the Ministry of Commerce, instant retail has maintained an average annual growth rate of over 50% in recent years. In 2022, the market size reached RMB 504.286 billion, and it is expected to triple by 2025.

However, as the consumption environment changes, consumer preferences are also evolving. Today, people's sensitivity to delivery times for instant retail is decreasing—instant retail is no longer just for emergencies but has become a daily consumption habit.

From a data perspective, Meituan Instashopping, Ele.me, and JD Daojia, as the top tier in the industry, have not yet created significant gaps between them. According to a report by consulting firm Jiuqian Zhongtai, in terms of GMV, Meituan Instashopping, Ele.me (non-food segment), and JD Daojia accounted for 34%, 26%, and 15% of the instant retail market share in 2022, respectively. Based on their 2023 financial reports, this ranking remains unchanged.

Alibaba's financial report for the third quarter of fiscal year 2024 showed that driven by Ele.me's healthy growth and Amap's rapid growth, orders for the local living services group increased by over 20% year-on-year. Data from the 2023 Double 11 shopping festival showed that over 90% of partnered brands on Ele.me achieved record-breaking transaction volumes, with nearly 100 brands seeing transaction growth exceeding 100% compared to the previous year.

In March, Ele.me's retail merchant SaaS platform "Aoxiang" launched the "AI Business Assistant." This tool provides merchants with comprehensive business services, including weekly reports, anomaly attribution, industry benchmarking, and market trend product selection. Merchants can intelligently generate key business reports and data, quickly identify operational issues, and further enhance their capabilities to seize business opportunities.

It can be said that instant retail remains a long-term growth opportunity where anything is possible. The next three years for Ele.me and Alibaba's local living services will undoubtedly bring new highlights.

### 相关股票

- [BABA-W (09988.HK)](https://longbridge.com/zh-CN/quote/09988.HK.md)
- [Alibaba (BABA.US)](https://longbridge.com/zh-CN/quote/BABA.US.md)
- [BABA-WR (89988.HK)](https://longbridge.com/zh-CN/quote/89988.HK.md)

## 评论 (2)

- **投资路 · 2024-05-15T08:56:33.000Z · 👍 2**: Alibaba still needs to wait
  - **投资之路** (2024-05-15T09:00:36.000Z): The performance has basically bottomed out, but the market seems to lack confidence in Alibaba, worrying about the competition from Pinduoduo. Maybe it hasn't hit the bottom yet.
