>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: foursquare, and one of the biggest tech deals of the year. square agreeing to buy australia's afterpay in a $29

billion deal. plus, crypto platform fire block, new funding, making unicorn status official. our conversation with the ceo about how crypto volatility is impacting strategy. and, mask mandates are slowly creeping back. facebook joining a list of companies requiring employees to mask up. how the return to work process is shifting as we speak. first, a look at the markets with kriti gupta. u.s. equities finishing the day in the red. kriti: it was a risk off day in the markets. study s&p 500 index ending in the red. you can see even the nasdaq ending flat on the day. the new york faang index, that is really where all that money went. the yield down four basis points.

even with that kind of big tech outperformance, when you see big tech outperform like today, you start to see semiconductors do it as well, actually hitting a record. you can see those semiconductors did hit a record, it did it with a lot less momentum. can they momentum really sustain when there is that much for i want to get to the micro. that gets me to the deal of the day. square, looking at afterpay for a $29 billion acquisition. what is interesting is what the stock actually did. the acquirer would actually see their stock drop. the acquiree would see their stock soar. afterpay up 35%, those u.s. listed shares of the australian company. even square actually up 10%.

so this is a deal that got improved -- got approval of all investors regardless of which stock you are in. emily: i want to stick with square now, the largest acquisition ever for that company. square has agreed to acquire the australian by now, pay later company afterpay. square says it is capitalizing on a shift away from traditional credit, especially for younger consumers. joining us to discuss, lisa, you say the deal is strategically compelling for square. why do you feel that way? >> the key thing for square, afterpay brings them an ecosystem of younger consumers who like this alternative form of credit and a really compelling two-sided network of merchants and consumers, a strong two-sided ecosystem, like

the holy grail in payments. square has merchants and consumers but the two pieces are not really connected. the key strategic benefit for square is they are now able to connect the two ecosystems of merchants and consumers and start to look a lot more like somebody like a paypal that has a very balanced type of model. in addition, afterpay helps square significantly with expanding outside of the u.s. emily: $29 billion is a lot money. square is a $125 million company. is the price tag worth it? lisa: it is a reasonably priced deal. the right valuation metric with these kinds of companies is something like an enterprise value to growth profit type of

ratio. the deal was priced somewhere in the mid 30's. square is currently trading in the high 20's. it is not actually that different. growth has been almost 100% year on year. evaluation-wise, they are both high flyers. it is an all-stock deal. it looks pretty attractive from a valuation perspective as well. emily: the by now, pay later alternative, we have reported apple is getting into this business with apple pay, goldman sachs. who does this threaten the most? lisa: again, a big strategic part of the deal, and why square was actually able to get afterpay at the valuation they were, afterpay and others have been facing a lot of pressure from paypal, apple, even like american express, getting into this business.

if you look back over the past few months, the stocks have actually not done very well. square is helping them. this is mostly competitive for paypal. it starts to create an alternative for paypal, starts to approach the scale, building and offering that is more similar to help. a firm was up 15% or 16% today. that is because it is expected those other pure play players are likely acquisition targets themselves. emily: lisa ellis, good to have you with us. we will be following how the deal plays out. china's securities regulator has called for talks with its american counterpart after the u.s. sec increased disclosure

requirements for ipo's in u.s. companies after a nearly $1 trillion share selloff last week. part of that was due to kathy would -- cathie wood's exit from tencent. so much happening in this space. amazing that ark could have such an impact on these latest moves by the chinese government. give us some broader context. katie: ark was kind of ahead of the game here. they started offloading chinese equities earlier in july before the flood of crackdown headlines. the ark innovation etf has zero exposure to china right now. it was 8% of its portfolio in february. it is a similar story with the next-generation internet etf, no exposure to china. that was 9% earlier this year.

that was kind of surprising to see them offload chinese equities. we heard that the regulatory changes have not fundamentally impacted the companies. they are pretty much out of china at this point. emily: where do ark's funds stand in general? katie: in general, not a lot of exposure. cathie wood has been bullish on china. they have not really, did publicly on why they are offloading these shares. if you look at the sweeping crackdowns, the broad nature of the investments they are targeting, whether that would be a viable place to put money. emily: to recap, the chinese government trying to step up

regulation, but of course that was kicked off by the chinese government in moves the chinese government has made. our international investors in general responding to this -- how are international investors in general responding to this crackdown? katie: even by the end of last week, after that dramatic crackdown on the private education sector on monday, by the end of the week you saw chinese state media trying to urge calm. chinese regulators said to be meeting with banks. nearly a trillion dollars was wiped out of chinese equity markets last week. there really two ways to look at this. most investors are saying it is unknowable if this is the extent

of the crackdown or if there is more to come. the index is still down over 40% from its february peak. emily: something we will definitely continue to follow. katie greifeld, thanks so much for that update. coming up, bitcoin drops after posting its biggest gain in three-month. what is driving the biggest -- the most recent crypto market move, next. and, several key titles will be delayed. the videogame maker reported quarterly results. recurrent spending fell in the first quarter as the game business continues to show weakness after a surge in play during the early phase of the pandemic. that was better than the anticipated 30% decline. this is bloomberg. ♪

emily: let's get a check on crypto markets. bitcoin fallen back after climbing over the weekend to its highest level since may. ed: participants are suggesting this is a pullback from what was a steep rise in a short time. sunday, we had 42 thousand $650 on bitcoin. we have pulled back below $40,000. broadly, cryptocurrencies were lower. take a look at this chart. the pullback has brought us back into the trading range of recent weeks. the orange box on the right

side, the volatility that we saw in april and may, that steep decline in mid-may, we treated in a much more narrow range. we are now back in the top of that range. it leaves strategist asking, what does that mean? it is one to watch going forward. when i come up here and we talk about a steep drop suddenly in a cryptocurrency, the -- cryptocurrency, within look at crypto related stocks. we did not really get that on monday. coinbase lower, have a percent. ryan blockchain off by about 1.5%. there is not such a close correlation right now. emily: all right. we'll keep watching. thanks so much. staying with crypto, leading crypto services provider fire block raised $310 million, valuing the company at $2 billion. the company -- the ceo joins us

now to talk more about the company's vision. talk to us about how fireblocks works. what use cases are there? >> we basically help companies and businesses with two things. one, to provide them with secure custody and storage. technology to store coins and digital assets. the second thing we do is we help them to transfer those assets and sell them in an efficient and secure way. we help them with issuance, basically bring traditional assets, for example regular currency into stable coins, securities, and so on. emily: the volatility obviously has been the story of the past

few month. after soaring to records, we are seeing this pullback. how is that impacted work you plan to take the company? michael: we actually -- our business model is somewhat by a transactional nature, volatility is actually good for us. in may, which i believe was the most volatile month, we sold about $180 billion of on chain transactions, which was a record for us. overall, we are seeing the activity around cryptocurrency and digital assets increasing continuously. of course, there is the volatility in the market. the amount of participants, the amount of volume continues to increase. the amount of wallets continues to increase. that speaks to the adoption or propagation of this technology into the general market, into

the mass institutional market. emily: speaking of security, it is very important when you have these private keys involved. you are being sued by a company, stakehound, over $76 million in ether, that they say you lost. can you give us an update on this lawsuit? michael: this is still being worked out in the court. we mentioned earlier, this is incorrect. they are still using their wallets. there was a different experiment done over there around staking in a very experimental side of the equities, where people are exploring new technologies and over there, there was an issue that was related mostly in terms of how the service was consumed by them.

there was something that was very exploratory. something that is important to stress, i think that generally speaking, the technology for custody and securing wallets is very mature. especially as people are really using the infrastructure, our infrastructure or competing infrastructure, we already know how to make sure that it is protected from insiders, protected from cyber criminals, and so on. emily: i think stories like this add to the fear that some traditional investors have in getting into cryptocurrency. there is this perception like, if you lose the private key, there is no other option, you lose your money. how do you quell that kind of fear? michael: first of all, there was a huge technology investments over the last couple of years where we were basically able to

remove the single point of failure and single point of compromise. what fireblocks does and some other companies, called multiparty compensation. we distribute the private key among multiple participants and multiple servers. even if one of them fails, there is a sufficient amount of redundancy to allow you to recover. that is one thing. the other thing is the fact that there is more and more insurance capacity that allows you to secure this. i think that the product codes generally speaking are well understood. it is true that this story specifically was a bit described in a way that does -- that contributes to the misconception. but specifically i had nothing to do with their wallets or custody of the technology and was much more related to the usage of ethereum through smart

contracts involved over there. emily: the ceo of microstrategy was on the show last week. he is one of the most bullish folks on bitcoin out there. the company has made $1.4 billion in profits on its cryptocurrencies on paper. but he says he is never going to sell. to think about holding bitcoin like holding property, something that you passed down over generations. what do you think of that idea? and how does this space evolve given that the volatility is still scary for some investors? michael: i think there is one question around basically bitcoin. i think that microstrategy was very bullish on specifically bitcoin and review of bitcoin as something that is digital gold. i think at fireblocks, what we are looking into is the ability for technology to survey -- to

serve much broader use cases around innovating of financial infrastructure. so, the areas that we are excited about, beyond just buying bitcoin is a reserve currency, is around digital payments. how that innovates and allows people to do transatlantic remittance and things like that. digital securities, clearing, and so on. emily: thanks so much for sharing your perspective with us. obviously, we will continue to follow coming up, google makes its biggest bet yet on smartphones. the pixel 6 and pro out this year. the scoop from mark hermon, next. this is bloomberg. ♪

mark: i'm mark gurman with

"bloomberg technology." i will be looking at google's upcoming pixel 6 and pixel 6 pro phones. for this year, google is making major changes to its devices and they plan to launch this entry-level model with aluminum edges as well as a higher end pro model with a bigger screen and nicer materials. both devices have new designs with a large camera mark on the back. -- camera bar on the back. the biggest changes on the inside, a new chip that replaces the call, that has been used for several years. the addition of a new chip means that google is catching up to apple and samsung, which have both included their own in-house processors inside their smartphone for several years. google says its new chip will beef up its artificial

intelligence capabilities including speech recognition speed and accuracy as well as in the process of photo and video. another upgrade coming is an ingrained fingerprint reader for unlocking the device and authenticating payments. in addition to the new hardware defined debt hardware design, the company is also -- a new hardware design, the company is introducing a new interface, designed to color mask the wallpaper. the new phones are likely to be announced in october and released later in 2021. the new phones will be critical for google which has ironically not made a dent into the hardware ecosystem for its own android operating system. the new phones launch half a decade after the first models back in 2016. the company also plans to debut a new low cost pixel 5a phone

in august. it will stack up against new vulnerable phones, as well as apple's next-generation iphones launching in september. for power on, i am mark gurman. ♪ emily: don't forget, you can sign up for mark's weekly newsletter at bloomberg.com. actress reese witherspoon has sold a majority stake in her production company hello sunshine, a deal that spotlights the market for original movies and tv shows. the buyer is a new but as yet unnamed firm run by former top disney execs and backed by blackstone. bloomberg has learned the deal values the company at about $900 million. hello sunshine produced shows like hbo drama " big little

lies" and the apple tv plus series "morning show." coming up, we will speak with jason gardner about how his company is powering brand-new common -- brand-new commerce features for google pay users. this is bloomberg. ♪

(announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

emily: welcome back to "bloomberg technology." i'm. emily chang in san francisco. . pandemic steals demand for food delivery and helped a narrower loss for the quarter. the first time the company has reported results as it preps to go public in the u.s. ed ludlow has more. what are you watching? ed: when we talk about these companies, they are usually pre-revenue. . their financials are a little ugly. . grab is different. because it is generally revenue-generating. it valued at the company at 40

billion u.s. dollars. southeast asia most valuable startup. kids and snags. the sec wanted them to change how they report. that is why we've got these numbers. let's dig into them. it's interesting. they had to change how they took into account customer incentives. we are familiar with the likes of uber and lyft giving discounts. the sec wanted them to change it. in the first quarter of this year, a net loss of $652 million. you can see the revenue, $260 million in the first quarter. it was revised sharply. last year, they recently reported $1.2 billion of revenue when it was revised. down and ended up being much less. $469 million. these companies, you have to wait a long time. originally the transaction was supposed to close this quarter. it has been pushed to the fourth quarter. investors seem to lose patience. between april 13 to the present

day, the stock is down more than 30%. but it still puts a grab on the map. southeast asia most valuable start. will it prove to be a success? what they are saying is this weakness in ride-hailing and thus strengthen food delivery, i thought that was an interesting company to bring up ahead of the week. we have uber reporting too. emily: we will be across all of those as well. thanks so much. you have all of the pandemic heightening the need for contactless payment. a payment processor and card issue with is -- issuer is capitalizing on the opportunity by giving users a new way to buy stuff. joining me is jason gardner and sonali basak. thank you so much for joining us. your card issuing platform will power the google play balance card. talk about how this will work and what is so significant about it? jason: thank you for having me.

as we've seen, the tokenization of payment across the ability to generate these cards virtually, and drop them into google pay or apple pay or samsung pay, has really accelerated over the last year and a half. our partnership with google allows google users to spend outside of the google ecosystem. so it could generate these cards, drop them into google pay and spend anywhere google pay is excepted. emily: huge news in the fintech space today with square buying after pay. i'm curious what you make of all of this consolidation? jason: firstly, they are two founder led companies that build full experiences for consumers. they also happen to be more -- both of our customers. we see where not only does every company want to become a fintech company, but there are many

flavors of fintech, where companies are combining in this square buying after pay. i can't wait to see what they do together. by now, pay later started in europe. it is now a movement in the u.s. we've seen cash app grow significantly as part of square. let's see the beautiful experience that they can create together as a combined entity. sonali: so many curious things on how this changes. i'm losing my words. credit underlining writ -- landscaping. you work with these companies from square to google, to even goldman sachs. honestly, i'm really curious as to what type of company wins at the end of the day? is it a fintech company, a big tech company or a traditional wall street company that ends up winning this game? jason: the best experience wins. the companies that build the best experience, they listen to their consumers, and businesses,

depending on which flavor of what they are trying to build, but we have seen where companies like goldman sachs, 160-year-old bank reinventing themselves. we have seen company is like after pay and by now, pay later or the cash app, and adding a car to the cash app, which happened at the beginning of 17, has transformed the banking. the idea of a betting fintech into companies is not a new thing. what is new is focusing on the consumer experience. this is happening around the world. in towns, cities, countries, continents, changing the landscape of how fintech, or really banking is brought to both consumers and businesses. i can't wait to see what happens. i think like most people, to see companies like square and after pay combined, you are really focused on the outcome. what can these companies do together? this is a new change in regards to the fintech landscape and how companies are coming together to build new experiences. sonali: is there anything folks

need to be worried about when it comes to buy now, pay later, some of the folks that have been around forever are worried about the underwriting standards that come with it. we have not seen a major hiccup yet. we have not even seen bad times for the consumers who use it yet is there anything you are worried about? jason: interest rates have remained fairly low. again, we see consumers are adopting all types of bind -- of buy now, pay later, whether it is after pay, a firm, zip, quad-play. there are a number of different firms out there. talk to me 20 or 30 buy now, pay later companies. consumers have adopted these. how consumers use this to buy at point-of-sale, i really think will continue. this started in europe. it came to the united states. now it is a global phenomenon. they will continue to use this as long as it is an option for them to buy at the point-of-sale. emily: how is crypto shaking all

of this up? now a massive part of square's business is also crypto. there is a ton of volatility, not something that crypto loyalists are not used to. however, for more traditional investors, i think there is still a lot of fear out there, given containing volatility. jason: you asked me that on a day that mark had. a went public. . there was a lot in the news because el salvador had said they are going to legitimize it and allow it to spend that. since then, we have seen janet yellen talk about stable coins. this is something we constantly talk about in every country in the world, trying to figure out what we are going to do with it. i think right now, we are in the context of, how do we regulate? i think regulation is good. i think it brings legitimacy to currencies. especially in the crypto world.

we see consumers beginning to use it, whether it is crypto rewards, part of credit card products or prepaid products. as you mentioned, square getting into the game, the ability to buy and spend crypto. i think there is more coming, i think there is a positive aspect in everything we're doing. this is another currency, another currency that consumers are going to use. also businesses. there is more to come. i think own -- i see only positive aspects of this. the markets regulated, the more legitimate it is, which allows consumers to use crypto as a legitimate currency at the point-of-sale. emily: i want -- sonali: i want to talk about your path ongoing public. so many contact company started off with this boom. then wavered a little bit in public markets, trading around your ipo price. are you still happy you went public? and what is it about these companies that you think they are getting so much steam at the onset, but then not keeping that momentum into trading?

jason: the founders ceo, you never think about it in the beginning that you want to take a company public. we had over an 11 year journey. we spent 18 months in planning to go public. it was time to go public. it was the right time for us to go public. going public on june 9 was a one-day event. this is a generational business. stocks go up, stocks go down. we are focused on building a great business and servicing our customers. after 18 months of running an ipo process, i'm really excited to get back to running the business on a day to day business, and see what we can accomplish as a business. not only as marquette, but what we can do for our customers around the world. emily: interesting. we see similar have us looking at the shares of robinhood and others. we will keep following that story and you getting back to business. founder and ceo and sonali basak, thank you both. companies around the world hitting paws on return to work

plans in the midst of the delta variant. we are looking at striking that delicate balance between digital and physical world, and how companies are adopting. that is next. before we had to the break, let's look at these images from cape canaveral in florida. boeing star line or crew capsule and the united launch alliance atlas five rocket has been rolled out to the launch site again. it is the second time that the spacecraft has been positioned, ready for takeoff on an unproved mission to the international space station. last thursday he tempt was scrapped after a russian module caused the iss to tilt. tuesday's launch expected at 1:30 p.m. wall street time. and of course, you can catch it right here on bloomberg television. this is bloomberg. ♪ evision. this is bloomberg. ♪

>> we want a strong -- we want to strongly recommend that people wear their masks in indoor settings even if your vaccinated. this is particularly true if you might be around anyone unvaccinated. if you don't know the people you are around, if you are not sure if they are vaccinated, or if you know some are unvaccinated, crucial to wear a mask even if you are vaccinated. the difference is if you are around fully vaccinated people, that is a better situation. emily: new york city mayor bill de blasio there. is comments coming hours before health authorities in california reinstated a mask mandate for san francisco and surrounding counties. los angeles already has new

guidelines. these recommendations along with other concerns surrounding the delta variant have caused companies to reevaluate their return to office plans. companies like google, facebook, and apple have delayed reopening plans, citing the rise in covid cases. some requiring proof of vaccination. a new book by stanford's robert siegel, the brains and brawn company, how leading organizations blend the best of digital and physical explores how about -- how companies can look at this in a rapidly evolving bid to post-pandemic load. -- world. robert siegel is here with me. thank you for joining us. you started writing this book in the middle of the pandemic. here we are thinking we would be out of it and we are not. how do companies navigate one hour it is one thing and the next hour it is something different? robert: i think we saw over the last 3, 4, 5 years, that every

company was having to blend digital and physical. the pandemic only excel -- accelerated that. we had to become experts on how to teach on zoom overnight. this will be with us on an ongoing basis. and coming companies will have to bring in digital capabilities and disrupting companies have to understand what it is like to function in the real world. emily:, guys like google, apple, uber pushing back the return to work. there are companies mandating mask mandates -- mandating vaccinations like facebook, google. should companies be mandating vaccines? is that the only way this will change? robert: right now, it appears the delta variant is hitting most people who are unvaccinated. if the government is not going to be able to do it, i only way we will be able to do it is the private sector will have to force people to get vaccinated if they want to come in. the blending of the digital and physical will be with us going forward. emily: one thing i think is missing in the messaging is talk about kids under 12 who cannot be vaccinated. even if you are vaccinated,

there is concern you are taking whatever exposure you have at the office or on transport to the office back to your family. how should companies be balancing all of that? i know they want people to get back to work. but it is scary for a lot of families. robert: they will have to be open to the needs of their employees. people who have young children, you have children, it is really hard if you are worried about, are you going to get your kids sick? will the kids end up spreading it to other people? you will see people take a more conservative view which will slow the -- us getting back to the other side of what we hope will be a time when it is back to normal. robert: they are -- emily: there are definitely people dying to get back to the office. there are other people who are on both sides who want to go back and are resentful there companies are pushing back the returns to work, and others who are resentful who feel like their employers don't understand that they would like to stay at home. until this is truly over. which it is not. how do companies strike that balance?

what is going to separate the companies that get this right for the -- from the companies who get it wrong? robert: the best companies will -- empathy toward their employees and understand different employees will need different things. people with young families will have to deal with health care, child care. you have to create opportunities for them to participate. people who want to come back in the office, maybe they are single or younger, you want to allow that to happen and do so safely. companies will need to be flexible, and they will need to know how to blend digital and physical together. emily: lincoln has called this the great reshuffle happening right now, if employees are not happy with what they are getting at work, they will go elsewhere. and they will find a place that meets their needs and desires. describe how you see that playing out? are we at a turning point where in a year, five years, we will look back on this moment and work history and see that the workforce has been forever changed? robert: our species is social.

we like being together. we can have this conversation. it is better than on zoom. but you will have to enable flexibility. flexibility is the key word. companies that are not flexible will lose talent. as my colleague likes to say, talent is destiny. if you are not able to provide an environment where people have options, labor will go elsewhere. emily: what about -- sometimes i think the qualities of individual and independent work are undervalued. there is a lot of creative inspiration that can happen individually. there are different kinds of work by can happen when you are alone. and have uninterrupted time. how should companies take that into account? i feel like there can be or should be a balance of both. robert: in the old days, when -- microsoft believed every engineer should have a door so they can enter the flow, and exit five or six hours later with all the code they wrote. now people are side-by-side. if you are an introvert, that is not always the most productive place to be. this comes back to flexibility.

companies will need to be able to understand sometimes people need quiet time and concentration. being in the office is not necessary. emily: robert siegel, new book out, take a look. "the brains and brawn company." right there on the screen. there you see it. coming up, need groceries delivered to your door in superfast time? there is an app for that. quite a few. we will look into the industry that is exciting both the seas and customers alike. this is bloomberg. ♪

emily: here in new york, getting whole foods delivered to your door about to get pricier depending on where you live.

amazon is tacking on a $9.95 service fee for deliveries in the boston and chicago areas, as well as manchester, new hampshire, portland, maine, and providence, rhode island. when amazon bought the organic grocery in 2017, it offered free deliveries for over $35. amazon has a lot of competition when it comes to grocery delivery. in recent months, we have seen a wrath of companies promising to curb your necessities straight to your door. a growing industry has the support of big-name backers. how lucrative can it be? bloomberg opinion's alex webb explains. alex: is venture capital going to kill your neighborhood convenience store? since the pandemic forced people into lockdown, new york, london and berlin have been flooded with rapid grocery services. they operate from so-called dark

stores, small warehouses in cheap locations away from the high streets. a promise to deliver a sixpack of beer, a bag of doritos or raw steak to your door in as little as 10 minutes after you order from their app. is this just another case of venture capitalist putting that -- millions into businesses that will never turn a profit? an analyst took an approach to finding out. he previously worked with courier to get a sense of how their businesses work. this time, he and his team set up camp outside a dark store in london and went about counting how many orders i got. >> the idea is if you turn up at a dark store, because all orders are being fulfilled from a single spot, you just need to go to that spot and company number of people on bikes cycling out with backpacks on. so you have a pretty good idea that that was a property for an order. if you spent enough time, a day, week, you can build a pretty robust view of what the daily

order count was. alex: and he got more orders than expected. six months after opening, the store was averaging 340 orders per day. depending on the size, each store could therefore conservatively be making between $4 million and $6 million a year in revenue, he estimates. that could be more as basket sizes are bigger. >> we know from some of the commentary out of the private operators better basket sizes are trending toward 30 euros. alex: that led him estimate the established dark store can make a profit that represents 5% and 10% of sales. that compares favorably with convenience stores which enjoy a profit margin of 2% and 4%. the model can be more profitable because it has lower costs. it does not need premium real estate locations to attract the passing, -- passing customer. each store can cover a wide area of 11 square kilometers. need locations. setting up does require a lot of money. at least $1.4 million per store.

the last generation of rapid growth consumer investments were platforms. three sided marketplaces like uber, left or airbnb, that connected by a customer with someone offering a product or service and took a percentage cut. in theory, it is a business model that does not require much investment. in reality, the low barriers to entry have made competition tough and marketing high. if you are a dark grocery operator, you are only competing for the customer. if you are uber eats or delivery, you are competing on three fronts. the customer, the best restaurants and couriers, all who might find a better deal with one of your rivals. the initial outlay is higher but once it is up and running, it should be more efficient. these companies are burning money on marketing to attract new customers. that is fine for now. they have raised $3 billion from investors this year alone, is venture capitalist determine the pandemic induced lockdowns were

accelerating e-commerce trends. it is clearly not sustainable for a city like london to have a dozen different ultrafast delivery companies. some will go under or be acquired by their rivals. finally, and ms. significant, 12 the growth trend survived the lockdowns? when people are working from home, they can place orders throughout the day. if they return to the office, in order to become concentrated in the evening, the business case may not add up as readily. it is easier for computer -- commuters to pop into the corner store when they are home. dark stores are here today -- tuesday. the irony is if everyone decides to attract the business, supermarkets will continue to pile into the space and the price will mean it seizes to be an attractive business. it will be good for the consumer. your local bodega might find its lunches being eaten by someone else. this is alex webb for bloomberg quicktake in london. emily: alex webb there in london. that does it for this edition of buy-now-pay-later make sure you join us tomorrow.

we will be joined by the ceo of blue apron in the cfo of match group, garry's would lower. i'm emily chang in san francisco. this is bloomberg. ♪

haidi: good morning. welcome to "daybreak: australia." on haidi stroud-watts in sydney. >> i'm sophie kamaruddin in hong kong. we are counting down to asia's major markets world open. shery: evening. i'm shery ahn. the top stories this hour. u.s. stocks decline along with treasury yields on soft u.s. manufacturing growth and lingering apply constraints. haidi: the spreading delta variant hangs over sentiments for the