What: Infrastructure investments are being made in logistics to deal with the pandemic.

Why is it important: Yet more elements of digital commerce are being built up to deal with the explosion in the format provoked by the pandemic. The future is bound to be impacted by these investments.

The Financial Times argues that e-commerce companies are building logistics networks that will last for decades. In spite of the last tech bubble bursting, foundations were nevertheless laid such as fibre-optic cable and capacity that reduced broadband costs which have served the growth of Google, Amazon and Facebook years later.

The argument here is that the current pandemic-fuelled e-commerce boom is building physical infrastructure and networks which will last for a long time. Examples include courier and driver networks, and delivery warehouses, big and small, often automated. Amazon has struck a deal with the City of London to turn 39 car parking spaces into a last mile logistics hub.

Delivery vehicles are the most common sight in many areas. Others are creating “dark stores” and “cloud kitchens”. In North America, it is the cities outside the 100 largest metropolitan areas that are the fastest-growing e-commerce markets. Even if the e-commerce bubble does deflate after the pandemic, we will be left with a much stronger logistics network.

In a further article, the FT claims that investment in DCs in the UK in 2020 reached  £ 4.7 bn, 25% more than the previous year and £ 500 m more than the record set in 2014. While retail landlords are suffering, established warehouse owners are thriving. This is expected to continue into 2021.

The pandemic tech boom is reshaping our cities 

UK WAREHOUSE INVESTMENTS HITS RECORD HIGH AS SHOPPERS SHIFT ONLINE