(Yicai Global) Feb. 22 -- Chinese e-commerce giant Alibaba Group Holding is planning to promote its buy-online, pick-up-in-store business through the merger of its restaurant review service under takeout platform Ele.me with its digital mapper AutoNavi, Yicai Global learned from a source familiar with the matter.

The merger, which is almost complete, will help Ele.me challenge on-demand services giant Meituan's dominance in delivery service market, industry insiders said.

Zhang Liang, head of the restaurant review business which was previously known as Koubei, will report to Liu Zhenfei, chief executive officer of AutoNavi, instead of Yu Yongfu, CEO of Alibaba Local Life Service, from now on, the source said.

It is difficult for Ele.me to run a click and collect business on its own, Li Chengdong, founder of e-commerce consultancy Dolphin, told Yicai Global. Beijing-based Meituan previously merged its restaurant review service Dianping with its life services app Meituan to create more consumption scenarios.

As both Ele.me and AutoNavi have similar delivery services, their merger makes sense, he added.

The merger will also help to control costs and stem losses, Li said. Ele.me, which together with AutoNavi and online travel agency Fliggy make up Alibaba Local Life Service, burns through cash.

Shanghai-based Ele.me and AutoNavi have yet to comment.

Alibaba CEO Zhang Yong said previously that he hopes to form a synergy between Ele.me’s restaurant review service and AutoNavi’s e-mapper Amap.

Editor: Kim Taylor