Ele.me - Alibaba Local ServicesWANG Lei, CEO of Ele.me

Consumption in the Alibaba Ecosystem

Goods ServicesContent

Vacation, Ticket & Hotel Booking

In-store Dining

Entertainment

Food DeliveryMoviesMusic

Books News

B2CC2CB2B

2

Notes: (1) Global Insight (retrieved on

August 6, 2018). (2)Total population as of 2017. (3) iResearch. This chart is

drawn not-to-scale.

Huge Potential in China's Online Service Market, High Frequency and Inelastic Demand for Online Food Delivery

Population(2)No. of Megacities (Population>2mn)

326mn 4

1,410mn

50+6 megacities with larger population

than N.Y.C.

Shan

ghai

Beiji

ng

Tian

jing

Gua

ngzh

ou

Shen

zhen

Wuh

an

N.Y

.C.

Don

ggua

n

Chen

gdu

Chon

gqin

g

Nan

jing

Xi'A

n

Shen

yang

Han

gzho

u

Suzh

ou

Qin

gdao

JiNan

Har

bin

Zhen

gzho

u

Dal

ian

L.A.

Kunm

ing

Wux

i

Xiam

en

Chan

gchu

n

Nin

gbo

Nan

ning

Taiy

uan

Hef

ei

Chan

gzho

u

Tang

shan

Chan

gsha

Xuzh

ou

Wen

zhou

Gui

yang

Chic

ago

L.A. 4.0mn Chicago

2.7mn

No. of Residents

N.Y.C. 8.6mn

Massive Demand to be Cultivated in Megacities Consumer Service Market in China

2017A 2020E

CAGR

Consumer service market

Restaurant Food Consumption

Consumer service marketRMB25.2tn

Restaurant Food ConsumptionRMB5.2tn

RMB872bn

11%

9%

42%

RMB18.4tn

RMB3.9tn

RMB305bnOn-Demand Food Delivery

On-Demand Food Delivery

(3)(1)

3

4

Ele.me Ecosystem

MerchantsUsers 2B/2CFulfillment Platform

Enabling SaaS, Financial Services

Supply Chain

User Acquisition Channels

Technology Infrastructure

Platform

*

* *

* Non-consolidated business

*

Unparalleled Scale with High Growth

167+ million AAC(1)

19.8x Number of Orders per AAC(1)

3.5 million Registered Merchants(2)

666K+ Monthly Active Riders(3)

5

Notes: (1) Annual Active Consumers, deduped between Ele.me and Baidu Waimai for the 12

months trailing June 30, 2018 (excluding orders from Koubei). (2) F&B merchants only, deduped between Ele.me and Koubei, as of June 30, 2018.(1)(3) Deduped between Ele.me and Baidu Waimai, as of June 2018.

Value Proposition to Consumers

6

Offering Convenient On-demand Services to Meet Inelastic and High-Frequency Consumption Needs

Breakfast Ordered on the Way to Work

Fast and Affordable Lunch Afternoon Tea

Dinner for Family Ordered on the Way

Home

Late Night Meal/ Snack

Fruits and Vegetables

Same-city Concierge Service

for Flowers, Medicine and Much

More

A New Day BeginsCustomization

Personalized RecommendationsTransparency Real-time Order Tracking

Access Enlarged Geographic Reach

ConvenienceEasy Order Placement for Food Delivery and More

Value Proposition to Merchants

7

Greater Order Volume Profitability without Incurring Additional Fixed Cost

Merchant Revenue – Revenue and Net Profit Increase after Collaborating with Ele.me. Greater Profitability without Incurring Additional Fixed Cost.

Pre-Ele.me Post-Ele.me

Pre- ELE.ME0.5km

Post-ELE.ME3km

Access Enlarged Serviceable Market

Operating Efficiency Increased Kitchen Utilization and Removed Seating Constraints

Customer Acquisition Direct Marketing to Target Demographic, Increased Loyalty

Profitability Net Margin Expansion on Incremental Orders

Fixed Cost

Variable Cost

Net Profit

For illustration only. This chart is drawn not-to-scale.

Industry-leading Nationwide Intelligent Fulfillment Platform

676 out of 701(1) Cities in China

covered(2)

666K+

All Orders are Distributed in Real-time with Updated Routing Information

AI-based Optimization Sets Fulfillment Fees by Balancing Demand and Supply

Superior User Experience Featuring Reduced Waiting Time and Precise Arrival Time

Industry-leading Route Planning ManagementMonthly Active Riders(3)

Advanced Intelligent Delivery Network

Notes: (1)Sources from Ministry of Civil

Affairs of the People’s Republic of China.

(2)As of April 30, 2018..(1)(3)Deduped between Ele.me and

Baidu Waimai, as of June 2018.

8

Synergy with Alibaba Ecosystem Enhances Consumer Engagement and Empowers Merchants

Consumer Engagement

Merchants Enabler

Logistics Infrastructure

®

*

* **

Services

*

*

9* Non-consolidated business

Alibaba Ecosystem Resources and Support

576mn AAC(1)

■User Online Consumption Profiling

870mn AAU(2)

■Leading Payment Platform

Maximized Consumer Traffic

167mn MAU(3)

■User Offline Consumption Profiling

Expansive User Base

10

Notes: (1) China retail marketplaces, for  the 12 months ended June 30, 2018.(2) Including annual active users from Alipay and its global JV partners,

for FY2018.(1)(3) As of May 31, 2018.

Unparalleled Consumer Insights and Engagement Across Commerce, Digital Entertainment and Local ServicesCross-platform Promotional Efforts

Membership Privileges from Online Shopping Extended to Include Food Ordering

When Watching World Cup at Night with Friends, Order Spicy Crayfish for Snack

Order on the High-speed Train, from Starbucks, before and after Movies

Commerce Digital Media and Entertainment Local Services

11

12

Unparalleled Consumer Insights and Engagement Across Commerce, Digital Media and Entertainment, and Local Services

Ele.me Large-scale On-demand Delivery Network (蜂⻦鸟配送) Provides Nationwide Last-mile Logistics Solutions to the Alibaba Ecosystem

®…

13

9am 12pm 3pm 6pm 9pmTime

With New Retail Expanding the Product / Service Scope for Ele.me, the Downtime for Riders and Merchants will be Reduced, and the Scale and Efficiency of Our Platform will be Further Improved

Full Integration into the Alibaba Ecosystem Improves Scale and Efficiency

Delivery Volume

14

15

Alibaba Ecosystem - Cooperation with Starbucks

Synergy with Alibaba Ecosystem Enhances Consumer Engagement and Empowers Merchants

Consumer Engagement

Merchants Enabler

Logistics Infrastructure

®

*

* **

Services

*

*

16* Non-consolidated business

THANK YOU