March 19 (Reuters) - Alibaba ( BABA ) on

Thursday reported a 1.7% rise in third-quarter revenue, missing

analysts' estimates, as heavy spending on one-hour delivery and

promotions during the peak shopping season did not translate

into a surge in demand.

China's largest e-commerce company booked revenue of 284.84

billion yuan ($41.28 billion) for the three months through

December, compared with the 290.7 billion yuan average of 21

analyst estimates compiled by LSEG.

($1 = 6.9003 Chinese yuan renminbi)

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini

Ganguli)