Analysts are looking into companies that could benefit from the Covid-19 outbreak and the resulting economic drop. However, with a global pandemic that has already caused more than 325,000 confirmed infections, 14,370 deaths and billions in economic damage there are no winners. Let’s look at technology companies that are thriving, surviving and suffering, and see what can help lead some of them through the storm more adeptly than others.
Companies that are thriving are JD.com, Amazon, Walmart and food delivery services such as DoorDash and Postmates. The videoconferencing app Zoom offers an important way to communicate from home and is now the number 1 app on the Google Play Store. Zoom rents space in 19 different data centers and relies on two other big companies: Microsoft, Azure and Amazon Web Services. According to CNN the social app for neighbors, Nextdoor, has had an 80% increase in use.
Other thriving companies include social media video chatting apps Houseparty and Marco Polo, both booming on app stores. The cannabis-delivery service Eaze, was in danger of going out of business in January and now seems to be doing well and continuing to deliver orders.
Alphabet, Google and Facebook are going to be the survivor class. People are looking for reliable information about the virus and to connect with extended family and friends. However, the online advertising market will most likely wear away in a recession. As WhatsApp traffic is sky high, Facebook’s Instagram service has been at a low.
Another surviving company is Apple, which barely made it through three months of supply challenges, it’s hard to imagine that consumers are going to be ready to buy premium devices after a pandemic. A similar situation is also happening to Intel Corp. Demand for PCs is at a low, however the rush online will most likely provide a spike in profitable server businesses.
Unfortunately, the list of businesses suffering is long. Lyft and Uber are struggling as people stay home, though Uber has the comfort of its food delivery unit UberEats. The current pandemic is a nightmare situation for Airbnb, which was hoping to go public this year, and the same with other tech travel companies such as Expedia and trip giant Bookings Holdings.
Payment companies like Square, PayPal, Stripe and Brex are also likely to take a big hit as retail transactions decline.
It is very Circumstantial who succeeds and who fails during the Covid-19 outbreak, however there are a few rules to make clear. The first rule being, in times of war, supply chains play a very important factor. Companies that have strong relationships with reliable suppliers can continue to succeed. However, relying on contractors, volunteer hosts or large amounts of freelancers during a crisis can be detrimental.
The other key lesson is that decisive leadership is important. Amazon announced last week the hiring of 100,000 new workers and said that they would limit the inflow of non-essential items in its warehouses. Walmart also announced that they are hiring 150,000 and also have testing sites at their stores. Both companies are turning massive operations around very quickly. Amid all that is happening, companies must look for new strategies, and new ways to raise money or cut their costs dramatically.
With global business now more interconnected and interdependent than ever, extreme success will not be common. If the economy continues to fall, we’re likely to find out that no company is immune to the pandemic.
Coronavirus is affecting different businesses differently; some are able to manage and even thrive while others struggle to maintain above water.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the Co-Founder of eMerchantBroker, the highest rated High volume credit card transactions processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.