Expansion in the food delivery sector has decelerated sharply from 2017 and 2018.
Ele.me’s service expansion follows on the heels of rival Meituan’s widened logistics services.
Authorities call on leading app operators to stop collecting user data without permission amid concerns over leaks.
The news also immediately comes after a delivery partnership between Luckin and Meituan was announced in December 2018.
Ele.me claimed 47.4% share of total order volume last year, closing the gap with long-time market leader Meituan Dianping, which held 51.8%.
Since Ele.me was acquired by Alibaba, the company has escalated a cash-burning subsidy war with Meituan Dianping
The crackdown comes as World Consumer Rights Day approaches on Mar. 15 when CGTN airs its annual “315” consumer protections TV special.
Increasing accidents, falling wages and unpaid salaries make for a risky job.
In May, Meituan Dianping unseated search engine Baidu as China’s third-largest listed internet company by market cap, behind only Alibaba and Tencent.
The system will help the company to bring leading retailers into the Alibaba ecosystem.