The lockdown has badly impact our half of the ecosystem especially our e-commerce and mobility services. It will effect India biggest startups and sub sectors that result various products deliveries are postpone and extended for a months. The groceries and food related essential services are permitted during the lockdown.
April 14, when prime minister addresses the nation on national television, the business world was gasping. India had been under a 21 days of nationwide lockdown to prevent the spread of naval corona virus. This is the main reason all the economic activity kept on hold for 21 days. All the startup sectors are hoping to curbs lifts from industries. All the industrial activities, app based businesses and ecommerce are non operational for a month.
After a month, the prime minister extending this lockdown till 3 may but they give some relaxation for the ecommerce services or some others sectors. Learn more how covid-19 impact on technology.
Impact On The Tech World
Lockdown has also badly effect the technology world. Cab booking sites, online travel platforms, flight booking sites and real estate services have been shut down since 24 March. They have zero sales in this period and the scenario become same for the several months.
On the other hand, there are some business which are booming like social media, e-learning, online video streaming, digital payments and e-health. But many expert believe that this surge not sustainable for a long time. Peoples would pull back their spending in the near future in these sectors.
The half of the ecommerce sector has been effective with this lockdown. The groceries and food related essential items are permitted during the lockdown. On the other hand, the electronic and mobile are also effective and not earn profit during the lockdown which account of for 60-70 per cent of these companies’ yearly revenues.
According to study of food delivery app, they tried to convincing the authorities that folks need their favorite cuisine delivered to their homes during lockdown. Most of the restaurants are closed during the lockdown and some restaurants services are also limited in this period.
Salary cut and retrenchment is a most common in many companies. The Airline and Hotel industries had most effective with this impact. RedBus, MakeMyTrip, Goibibo and Ixigio have announced salary cut of their employees. Fabhotels and Oyo have layoff 20% to 50% per cent of its workforce and some employee to go on leave without pay.
Pivots and Partnerships
The Noval Corona virus infection was first discovered in China in December month within few days the infection reached the mark of 2.5 Million across the globe. While most of the analysts tried to find the estimate loss or business impact and it will be a protracted recovery over 8-10 months.
Pivot is the new name of any type of startup businesses. There are at least five players in this field (Zomato, Meesho, Paytm Mall, Perpule and NoBroker. According to media reports these businesses not attract any type of outside funding and would move slowly.
The lockdown has forced lots of business to change it according to the situation. Grofer, a leading grocey firm in India have opened a new warehouse in gurgaon location. They opened new warehouse with 2 weeks and hire hundreds of workers for their warehouse.
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This article is shared by Akshay Sharma. He is a blogger and writer of the Happiness Creativity Blog. You can follow him on Twitter and Instagram.