BABA: Taobao Launches Loyalty Program Across Apps — But $433M Ant Group Settlement Still Weighs

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA has unveiled a multi-tier loyalty program on its flagship Taobao platform, integrating benefits across a range of its services including Ele.me, Freshippo, Fliggy, and Amap. The free program aims to deepen user engagement and cross-platform activity for nearly 1 billion active customers — but its $433.5 million settlement over the Ant Group IPO debacle continues to cloud Alibaba’s regulatory legacy.

Key Membership Launch Highlights

• Loyalty program now live across Taobao and Tmall for ~1 billion users.
• Six tiers: bronze, silver, gold, platinum, diamond, and black diamond.
• Perks include shopping discounts, hotel upgrades, delivery benefits, and ride-hailing rewards.
• Black diamond members receive 20% extra discounts on select products and gold status at 31 hotel chains, including Hilton and Marriott.
• Program integrates services from Ele.me (food), Fliggy (travel), Freshippo (grocery), and Amap (mobility).
• Aims to create ecosystem-wide synergy and lock-in consumer loyalty amid China’s e-commerce price war.

Timeline Overview

• November 5, 2019: Regulators warned Alibaba over financial and antitrust compliance.
• November 2, 2020: Ant Group executives summoned over regulatory concerns.
• November 3, 2020: Ant’s IPO suspended; BABA dropped 8%.
• December 23–24, 2020: Antitrust probe launched; BABA fell 13% in one day.
• April 22, 2022: Investors filed suit alleging failure to disclose regulatory risks.
• Final settlement amount: $433.5 million.

Allegations Include

• Misrepresenting Ant Group’s regulatory standing ahead of its IPO.
• Failing to disclose compliance issues with consumer lending rules.
• Downplaying monopoly investigations during investor roadshows.
• Omitting material risk factors that undermined Ant’s valuation.

Investor Update

Alibaba’s $433.5 million cash settlement addressed investor claims linked to the abrupt halt of Ant Group’s record-setting IPO. Despite this legacy setback, Alibaba is refocusing its strategy on AI, cloud, and consumer ecosystem cohesion — with the new Taobao loyalty rollout playing a central role in boosting platform-wide engagement.

You can check more information about it and file for a payout HERE.