The pandemic tech boom is reshaping cities

Today's e-commerce companies are building logistics networks that will last for decades

The most visible manifestation of today’s pandemic-fuelled e-commerce expansion is the courier and driver network operated by companies like DoorDash (above) and Amazon that ferries goods around. The less obvious part of the e-commerce infrastructure being developed is the delivery warehouses, both big and small. PHOTO: REUTERS

(FINANCIAL TIMES) When shares in the US food delivery app DoorDash jumped by 86 per cent on their first day of trading last month, it did not take long for sceptics to start frothing about another tech bubble.

DoorDash has never generated annual net profits. It has warned investors that the losses will only continue as it prioritises growth. Analysts have questioned whether these "on-demand" e-commerce businesses can ever make money. Yet DoorDash is valued at around US$50 billion (S$66 billion); Uber's market capitalisation is now around US$100 billion.

Please or to continue reading the full article.

Get unlimited access to all stories at $0.99/month

  • Latest headlines and exclusive stories
  • In-depth analyses and award-winning multimedia content
  • Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*

*Terms and conditions apply.

Join ST's Telegram channel here and get the latest breaking news delivered to you.