In a previous post, I discussed the importance of making more services available online in order to exploit the telecom-transport tradeoff. My argument was based on the delays and waste caused by the poor transport system in Sri Lanka, exacerbated by the government’s eagerness to close roads at the drop of a security hat. According to the story below, e- commerce is rapidly gaining ground in the US, where roads are rarely closed but the price of fuel has increased (though still much cheaper in in purchasing-power terms than Sri Lanka).
To Save Gas, Shoppers Stay Home and Click – NYTimes.com
Online shopping is gaining at a time when simply filling up a gas tank to head to the mall can seem like a spending spree.
A number of retailers — including Gap, Victoria’s Secret and J. C. Penney — are experiencing double-digit sales growth at their shopping Web sites, creating a surprising bright spot during an otherwise gloomy time for sales in brick-and-mortar stores.
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