5 Businesses That Got Boosted By COVID-19

When a global pandemic (covid-19) hits, the economy is bound to suffer. In an attempt to minimize the damage to human life, people are forced to take social distancing. Restrictions and guidelines are implied. As a result, businesses take the heat and end up on the losing side.

However, that is not true for all sectors. For example, pharmaceuticals and medical supplies businesses come out as the winners along with retailers who supply daily necessities. Big tech companies also got boosted by the pandemic as the work-from-home demand became a necessity.

A few more sectors came out as the beneficiary of the covid-19 pandemic. This article is about them.

1.       Streaming

When a global pandemic forces millions of people to stay at home and they have nothing to do they resort to entertainment. Social media alone can’t curb the boredom stay-home brings. People resorted to other forms of entertainment, and streaming came top. Netflix alone has gained twice the subscribers than the previous year. Major streaming services have been reported to up by 50%. Netflix, Hulu, Amazon Prime, Disney Plus, and Twitch – all have prospered during COVID. Netflix is expected to retain its crown. Big companies like Warner Bros have announced that they will also release their movies on HBO Max.

Swedish company Spotify has also gained a pandemic boost. It has seen a more than 100% increase in demand, which brought them over $60 billion.

 

2.       Gaming

The video game industry, another form of entertainment, has thrived during the pandemic. Millions of people at home are searching for a new source of entertainment. Video games became one of the obvious options. Big gaming platforms such as Microsoft and Twitch have prospered heavily during COVID. Roblox has recently gone public and raised funds. It is one of the winners of the pandemic. The company is now valued at $30 Billion.

A new model of interactive online multiplayer gaming has vastly increased the number of video game players. Popular games like Fifa and Call of duty have reported an increased number of played hours. Online casino gaming and fantasy sports have also soared during the pandemic. The gaming industry may keep the gained surge in the future.

 

3.       Remittance

The covid-19 pandemic has also positively impacted the freelancing economy. As work-from-home became a necessity, demand for freelancing also soared. Gig sites like Upwork and Fiverr have reported growth in demand. It could be explained by the companies’ downsizing their work and looking for outsourcing solutions. More people have resorted to freelancing services due to stay-at-home and lost jobs.

This could also indicate a dimensional shift in the post covid world. 2020 has shown the world that more jobs could be accomplished from home. Besides, freelancing is a promising sector. As the world approaches more digital, more people will be leaping towards an independent career.

 

4.       Digital Payments

Covid has forced people to maintain social distancing. To stay safe from potential transmission, people have to remain contactless. Hence, the need for electronic payments soared. Fintech (financial technology) has thrived during covid.

Digital payment services like Paypal, Square, and Sea group – all have benefitted during this time. Square’s market value increased up to $98 billion. Amsterdam-based digital payment service Adyen has seen an almost 200% increase, gaining $70 billion in market value. Nigerian startup Flutterwave has gained huge business from the pandemic and it is valued at over $1 billion now.

Online payment giant Paypal’s business hit the sky since the pandemic. It has gained more than 100% increase in business and over $270 billion in market value. China’s East Money Information, which provides an online trading service, gained $41 billion in 2020. Brazilian payment service StoneCo gained $26 billion.

 

5.       E-Commerce

And the biggest gainer, since the pandemic began, is undoubtedly the e-commerce sector. Amazon, the e-commerce giant, gained a $1.6 trillion market value, an 80% rise. The pandemic panic has pushed millions of people towards online solutions, and, therefore, e-commerce businesses hit high. Stay-at-home people went online for their daily necessities. As a result, logistics businesses also gained from the pandemic.

China-based e-commerce site Pinduoduo’s market value increased to $218 billion, a 400% rise in value. Canadian company Shopify gained over $139 billion in market value. Chinese company Meituan gained $225 billion. Chinese JD.com gained $136 billion.

Other notable prospered e-commerce companies are – the US company Chewy with a $37 billion gain and the Argentine company MercadoLibre with an $84 billion gain.

Finally, the trend reflects on how the post covid world future might be, a pure digital dominance. People will lean towards online more and more – be it entertainment or daily necessities.