June 23 (Reuters) - Alibaba ( BABA ) on Monday said it

will merge its food delivery platform Ele.me and online travel

agency Fliggy into its core e-commerce business as the Chinese

group streamlines operations amid intensifying competition.

A prolonged property crisis and the economic fallout of the

U.S.'s evolving trade policy have dampened spending appetite of

Chinese shoppers.

At the same time, Chinese e-commerce giants are engaged in a

price war and have been aggressively expanding into "instant

retail," which focuses on delivery times of just 30 to 60

minutes, to attract buyers.

The company said the reorganization was a "strategic

upgrade" as it transitions from a traditional e-commerce company

to a broader consumer-focused platform.

"Moving forward, the company will increasingly optimize its

business models and organizational structures from the user's

perspective to create richer, higher-quality consumer

experiences," it said.