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Thriving Industries in the Age of COVID-19: Companies that Adapted and Excelled

Thriving Industries During the Pandemic

The COVID-19 pandemic has brought about rapid changes in the global economy, with multiple industries experiencing significant growth as a result of the new reality. In this article, we will examine some of the businesses that have thrived in the midst of the pandemic and analyze the reasons behind their success.

Food Delivery

With the shutdown of restaurants and cafes across the world, food delivery services such as DoorDash have seen a surge in demand. DoorDash, one of the largest food delivery services in the United States, filed for an initial public offering (IPO) in December 2020.

Their latest financial report showed a rise in revenue due to higher order volumes as people place orders for their favorite meals while adhering to social distancing guidelines.

Vaccine Development

The COVID-19 pandemic has led to the rapid development of vaccines, with companies such as Altimmune experiencing a surge in their stock prices as a result. Altimmune, a clinical-stage biopharmaceutical company, has seen its stock prices rise as they develop a nasal spray vaccine for COVID-19.

With the pandemic still raging on, vaccine development companies are likely to keep thriving in the coming months.

Videoconferencing

As remote work has become the norm, video conferencing tools like Zoom have seen a massive increase in demand. Zoom, which is used by millions of people around the world, has seen its stock price soar since the pandemic started.

Its market capitalization reached a record high in September 2020, as more and more people began working remotely from home. As businesses continue to transition to remote work, the demand for video conferencing tools is expected to remain high.

Home Craft Stores

Online home craft stores like Etsy have seen a surge in e-commerce activity as people spend more time indoors due to the pandemic. Etsy, the online marketplace for handmade and vintage items, saw a spike in sales in March 2020, with revenue increasing by 35% compared to the previous year.

As more people focus on hobbies and crafts while under lockdown, home craft stores like Etsy are likely to continue thriving.

Grocery Delivery

With more people staying at home, grocery delivery services like Instacart have seen an increase in demand. Instacart, an online grocery delivery service, saw its business grow in 2020, with revenue doubling compared to the previous year.

The company is now planning to go public with an IPO, as more people opt for delivery services to get their groceries.

Online Auto Sales

Online auto sales companies like Carvana have seen a rise as more consumers shift their car-buying process online. Carvana, which sells used cars online, saw its shares reach an all-time high in December 2020 amid the pandemic.

With the convenience of online shopping and contactless delivery, customers are turning to companies like Carvana to make their purchases.

Payment Services Providers

With a rise in online transactions connected to remote work and distancing guidelines, payment service providers like PayPal have seen a surge in their business. PayPal, which offers contactless payment solutions, has seen an increase in transactions as more people switch to digital payments amid the pandemic.

The convenience of contactless payments paves the way for payment services providers to thrive even beyond the pandemic.

Transportation and Freight Services

FedEx, one of the largest transportation and freight services in the world, is seeing a surge in demand as more people turn to online shopping. The global economy, while struggling in some areas, has boosted the delivery industry as people rely on goods and services to be delivered.

As the e-commerce industry grows, transportation and freight services are likely to continue to thrive.

Diagnostic Healthcare

The pandemic has brought about a rise in remote diagnostics and telemedicine services. Quidel Corporation, a developer of diagnostic healthcare solutions, has seen a significant boost as a result.

Their point-of-care diagnostic tests have been used in emergency rooms and clinics across the globe, leading to its market capitalization skyrocketing in the past year.

Cloud-Based Technology

Cloud services have helped facilitate remote work, making them increasingly popular in recent times. Salesforce.com, one of the leading cloud-services providers, has seen an increase in demand as more people work from home.

With the remote workforce increasing in popularity, cloud-based technology is likely to keep thriving.

Telehealth

Livongo and Teladoc Health, providers of telehealth services, have seen a spike in demand due to the pandemic. Patients, unable to see their doctors due to social distancing guidelines, are turning to telehealth services for medical consultations.

As the healthcare industry shifts to remote healthcare solutions, telehealth providers are likely to continue thriving.

Conclusion

The COVID-19 pandemic has brought about a rapid shift in the global economy. The businesses and industries outlined above are just a few examples of those that have been able to thrive amidst the economic havoc brought about by the pandemic.

Moving forward, many of these businesses are poised to continue to succeed as the pandemic continues to shape our lives in new and different ways.

Industries That Came Into Their Own in 2020

The year 2020 has been a year of tremendous changes. The global pandemic, which forced the world to adapt, has also led to an increase in demand across multiple industries.

The following industries have come into their own in 2020, as they have seen substantial growth and continue to thrive in the new reality.

Food Delivery

As people stay at home, online food delivery services have seen a surge in demand. DoorDash, an American food delivery service, has filed for an IPO after reaching a market capitalization of $16 billion in November 2020.

The demand for DoorDashs service has skyrocketed, especially because restaurants have been shut down or limited to take-out and delivery services only.

Home Craft Stores

With more time at home, people have focused on home decor and craft projects. Online home craft stores such as Etsy have seen a significant increase in demand, leading to their stock market pricing surging.

Etsy, which specializes in handmade and vintage items, saw an increase in sales of about 35% in Q2 2020 compared to the previous year.

Grocery Delivery

Stay-at-home orders and the need to avoid crowded places have led to an increase in demand for grocery delivery services. Instacart, an online grocery delivery service, has reportedly experienced a 30 times increase in demand since the pandemic started.

As a result, Instacart is planning to launch an IPO in 2021.

Online Auto Sales

Car buying has shifted to e-commerce as people prefer to avoid physical contact when purchasing products amid the pandemic. Carvana, a leading online auto sales company, saw an increase of 43% in revenue in Q3 2020 compared to the previous year.

The company aims to become the primary source of auto sales by providing a completely contactless purchasing experience. As the demand for online auto sales keeps rising, Carvana will likely continue to thrive.

Payment Services Providers

The COVID-19 pandemic made online purchases necessary for people to follow the social distancing guidelines. As a result, payment services providers, especially those with contactless payment options, experienced a significant increase in demand.

PayPal, one of the most popular online payment solutions, reported an increase of 25% in revenue in Q2 2020 compared to the previous year. In addition, their user base grew by more than 25 million.

Due to the convenience offered by these payment services, they are expected to keep growing.

Diagnostic Healthcare

Due to social distancing measures, many people have avoided going to hospitals and other healthcare facilities. Instead, remote diagnostics services have become more popular.

Quidel Corporation, a company specializing in diagnostic healthcare solutions, has experienced a 60-fold increase in demand. Their diagnostic testing solutions are convenient because of their point-of-care nature.

Cloud-Based Technology

The pandemic has led to the shift of the workforce from offices to remote locations. Due to this, cloud-based technology has become essential for companies to function efficiently.

Salesforce.com, known for its cloud-based Customer Relationship Management (CRM) software, reported an increase in demand for their services in Q3 2020. Remote workforce tools such as video meetings and remote access are a significant part of their offering.

Telehealth

The new reality presented itself as a challenge for medical practices with social distancing requirements taking effect.

Telehealth solutions such as Livongo and Teladoc Health, have become increasingly popular. Patients have access to healthcare from the comfort of their own homes.

As a result, Livongos stock price more than doubled in 2020, while Teladoc Health’s stock price increased by 139% over the same time period.

Specific Companies That Have Thrived

Certain companies have experienced remarkable growth due to the changes brought about by COVID-19. DoorDash has become a vital component of the restaurant industry’s survival as a result of its food delivery services.

During the pandemic, they have reached a market cap of $16.9 billion. Rapidly growing demand for their services, combined with the implementation of contactless delivery, contributed to their success.

Altimmune, a clinical-stage biopharmaceutical company, saw its stock price go up by over 1,000% due to vaccine development opportunities caused by the pandemic. Altimmune’s development of a nasal spray vaccine for COVID-19 has significant implications as it could provide a means to vaccinate individuals without requiring refrigeration.

Zoom, a videoconferencing company, has become a household name during the pandemic. It is used for meetings, webinars, and virtual events by millions of people worldwide.

Zooms stock price has risen by over 400% in 2020, leading to its market capitalization exceeding that of some of the world’s largest airlines. Etsy, sought after for its handmade and vintage items, saw a 103% increase in revenue in Q3 2020.

With the increase in people spending time indoors, the demand for Etsy’s products increased multifold. As one of the largest grocery delivery companies, Instacart experienced a 500% increase in orders throughout 2020.

Due to the pandemic, people wanted to stay in their homes instead of going to crowded stores, leading to the increase in demand for the service.

Carvana, an online auto sales company, has seen its stock price increase by 800% since the beginning of 2020.

Carvana’s “contactless” purchase and delivery process has led to a surge in demand for their services. PayPal, the digital payment platform experienced a surge in demand as a result of social distancing guidelines and remote working.

The number of new consumers on their platform increased by 21.3 million in Q3 2020, surpassing what was previously projected. The company’s revenue reached an all-time high in 2020.

FedEx, a leader in transportation and freight services, saw revenue in Q4 2020 increase by 13.5% compared to the previous year. FedEx is experiencing a surge in demand for its services due to the growth of e-commerce.

Quidel Corporation, a developer of diagnostic healthcare solutions, experienced tremendous growth amid the pandemic due to the demand for remote diagnostics and POC testing. Salesforce.com, whose cloud-based technology has proven to be essential for remote workplace collaboration, experienced revenue growth of 20% compared to the same period in the previous year.

Teladoc Health, a telehealth provider, saw its patient visits surge by 200% compared to the previous year, enhancing its already strong reputation for providing healthcare services that are accessible, convenient and affordable.

The pandemic has presented an opportunity for these companies to thrive despite the challenging economic situation.

As we move towards the new normal, these companies will continue to adapt and grow. In conclusion, the COVID-19 pandemic has brought about significant changes, including a surge in demand across multiple industries.

Food delivery, home craft stores, grocery delivery, online auto sales, payment services, diagnostic healthcare, cloud-based technology, and telehealth have proven to be essential during the pandemic. Companies like DoorDash, Altimmune, Zoom, Etsy, Instacart, Carvana, PayPal, FedEx, Quidel Corporation, Salesforce.com and Teladoc Health have experienced significant growth during this time.

As the pandemic continues to affect different aspects of our lives, these industries are poised to keep growing and adapting to the new reality. The takeaway is that companies that can pivot and adapt to difficult situations always stand a chance to thrive, regardless of the economic situation at the time.

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