Alibaba Said to Back Chinese Food Startup

Alibaba is investing in a Chinese food startup, valuing it at $6 billion, to expand its ecosystem and compete with Tencent-backed rivals. The integration of food delivery complements Alibaba's services like Alipay and mobile shopping. China's large, densely populated cities and increasing smartphone use make it a promising market for food delivery. Despite global struggles, Alibaba's ecosystem offers advantages. VC funding in China remains strong, with major companies like Alibaba driving growth.

What is the primary reason Alibaba is investing in the food delivery startup Ellamae?

• To enter the European market

• To build out its ecosystem and complement existing services

• To diversify its investment portfolio

• To reduce its dependency on mobile payments

What advantage does Ellamae have by being part of the Alibaba system?

• Priority in Alibaba's marketing campaigns

• Exclusive rights to use Alipay

• Ability to tap into Alibaba's existing customer base and services

• Access to Alibaba's logistics network

Why is food delivery more successful in China compared to other countries?

• Due to lower labor costs

• Because of government subsidies

• Thanks to the large population and densely packed cities

• Because of a lack of competition

How does the increasing use of smartphones contribute to the success of food delivery services in China?

• It reduces delivery times

• It allows for better marketing strategies

• It increases the number of delivery drivers

• It enables easier access to delivery apps

What is the current trend in venture capital funding in China according to the transcript?

• Investors are focusing on technology startups only

• There is a shift towards European markets

• Large companies are still investing heavily

• Seed money is drying up