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 factors contribute to the success of Alibaba's food delivery service in densely populated cities?

What does the current VC funding landscape in China indicate about investment trends?