Alibaba’s Ele.me sets aside $3.2m to cut commission on merchants

The subsidy allows reduced commission for covered merchants for at least 15 days.

Alibaba Group’s food delivery platform Ele.me has set aside an initial $3.2m (RMB20m)  to subsidise the commission fees of merchants that were hurt by the coronavirus pandemic, the company said in a news release.

The subsidy covers catering vendors in the 87 areas most affected by COVID-19 outbreaks across China, who will be able to enjoy at least 15 days of reduced commissions, the company said.

The refund will go directly into their accounts before the end of March, with no additional checks required from the platform.

Merchants in all high and medium-risk areas designated by health authorities after March will also be eligible for lower commission fees, Ele.me said.

Late last year, amidst a city-wide lockdown in the northern Chinese city of Xi’an, Ele.me rolled out a mechanism enabling merchants to temporarily shutter their virtual stores without damaging platform rankings.