In this chapter, various civilizational impacts of the ICT development are presented, followed by an in-depth analysis of the urban service sector as the main area where virtualization effects can be observed. The study adopts social, geographical, and political perspectives to demonstrate the profound and multifaceted consequences of information and communications technologies on urban development. Its main argument is that the shift from traditional services to online services in the recent years has a considerable impact on neighborhoods which requires a targeted intervention from urban governance.