The first criteria to being an entrepreneur is to strike a perfect balance between risk and profit.
COVID-19 is that opportunity in disguise, when you can showcase your entrepreneurship skills amidst lockdown and social distancing.
There are roadblocks to it and limited movement of customers is making it worse. However, the digital space is wide open for the exchange of services and products. There is an exhaustive list of online businesses in COVID-19 that have managed to make a fortune.
Well, at least sixteen sectors have recorded strong growth despite being tightly bolted by the influences of lockdown and social distancing. Numerous businesses across these sectors have gravitated to the digital space through mobile app development and are, in turn, found to be resonating well with their audience/customers.
The good news is, we have done the heavy lifting for you with our incisive research about these sectors. Below you will find exclusive information about some particular sectors and online businesses in COVID-19 that have grabbed the early slice of profit during the pandemic.
What Should You Expect from our Research?
Bag all information that you can and join the bandwagon, while there’s still room for profitability. Once it reaches a mass of businessmen, you know, the competition out there is going to be fierce.
Below are the top sectors and online businesses in COVID-19, that are making a fortune.
Of course, healthcare is the most remunerative online businesses in COVID-19, on account of growing health-consciousness among individuals across age groups.
This lucrativeness is on the back of the advent, and almost boom of telemedicine. Telehealth and telemedicine are changing the very facet of healthcare when the hospitals are operating at full capacity. Regular checkups for patients suffering from chronic diseases can be conducted using telemedicine.
On top of it, there’s an on-demand business model that is promoting the concept of on-demand doctors and on-demand pharmaceuticals. The convergence of technology and healthcare has worked wonderous for patients as well as healthcare operators. As a result, numerous entrepreneurs are looking forward to healthcare app development in COVID-19.
While patients can save up a lot of time that would have otherwise been wasted in waiting for their appointment, medical professionals can utilize their resources effectively. This efficiency in the long term translates into revenue, and the examples of the companies below show how they lead the transformation.
Teladoc is an affordable and convenient digital platform for patients to connect to a certified medical professional via text, a phone call or a video call. This year in mid-March, the company witnessed a sharp spike of 50% in the number of visitors, seeking medical advice from its virtual medical consultation app for doctors and patients, as compared to the first week of the same month.
Moreover, revenue from subscription fees increased as much as 29% this quarter as compared to last year’s revenue around the same time.
By the way, uncertainty amidst COVID-19 induced this spike and the company was able to leverage the most out of its digital platform.
Let’s look at another successful healthcare application.
Founded in 2015, 98point6 has recorded a 200% rise in the patient volume since January. Out of this whopping increase, nearly a fifth of the visits are related to COVID-19. The telemedicine startup that connects medical professionals with AI-powered text-oriented care has been drawing more users with its user-friendliness functionality.
Gauging the perpetual rise in the demand for clinicians, nearly USD 43 Mn was secured from top investors—the merchant banking division of Goldman Sachs’ and Costco’s co-founder, Jim Sinegal.
This telemedicine app solution in COVID-19 is striving to secure funds to be able to offer attractive features to its customers. The fund-raising has been directed to accommodate the latest technology in the app and increase the number of service providers.
According to a survey, nearly 67% of the U.S. households own a pet. This creates ample opportunities already for the manufacturers and distributors of pet supplies and services.
Since lockdown has limited the rush of people towards the offline stores, opportunities for online businesses in COVID-19 for pet supplies have increased significantly. During the pandemic, the sales of pet feeds are soaring, as individuals wanted to ensure that they have enough food supplies for their canines.
Numerous websites and mobile apps shipping pet supplies have benefitted, as sales from brick-and-mortar stores have slumped. It won’t come as a surprise if the demand for app development for pet supplies would soar during the times of the crisis.
Discounts, deals, free shipping, and doorstep delivery etc. are some of the features that managed to stand out for the pet owners, as distributors are striving to leverage the prowess of technology to build a dedicated digital shop for pets.
Among the other virtual shops for pet supplies and services on the Internet, below are the two companies that have made it to the news for the right reasons.
In a very short span of time, Chewy has become a household brand. Chewy can be classified as an online eCommerce portal dedicated to pet foods. As individuals have gone to extremes to take care of their canines, Chewy has, in turn, helped them to do so by providing a range of regular and premium feeds.
While there was a steady demand for pet food, it is during the lockdown that pet owners resorted to online commerce, and Chewy drew a big hand out of it. Recently, Chewy saw a sharp uptick of 10% in its stock value. The company is set to onboard as many as 6000 new employees to cater to the increased demand. Well, lockdown isn’t that bad, is it?
Unlike Chewy, Blue Buffalo has a single vendor eCommerce platform. It offers a range of feeds and treats for dogs and cats.
Blue Buffalo is one among those cohorts of businesses that embraced digital at the right time. As a result, the company was able to reverse the effect of COVID-19 on its revenue. In fact, according to stock prediction and reports, Blue Buffalo stock has witnessed and would continue to pave the path of electrifying returns during the lockdown.
As opposed to the common notion that packaged food and beverages would witness a decline in their sales, the sector as a whole, is being led by the demand for milk. As soon as lockdown was announced, people started stocking up essential food and beverages. Since eating out is not an option, for at least some time, customers have exhibited a high proclivity for packaged food.
Online businesses in COVID-19 into the delivery service niche have been leveraging the situation to make a gain, and are, in turn, encouraging new businessmen. A cue in there–More groceries delivery app development is going to happen during and after COVID-19.
Though the focus has been on the essential goods, binge eating and drinking trends have taken over the normal eating habits.
Amid the fear of coming in contact with an infected individual while shopping from local stores, people are finding it more comfortable to form new habits of buying stuff online, thereby underpinning the growth of online commerce of food and beverage.
‘No contact delivery’ has been one of the crucial features offered by the companies supplying packaged food and beverages online, which has built trust among the customers. Overall, consumers are bracing themselves to shop online for packaged food products and beverages.
Established in 1925, ElmHurst has occupied a prominent place in the plant-based milk niche. The company started with a brick-and-mortar store; however, as time passed by, it switched to the digital mode. Today, it has been enjoying lucrative opportunities even when the offline stores are up and running.
A majority of the success of ElmHurst has been brought by the fact that it supports online delivery. Consumers find it more reliable to get things at their doorstep, rather than going out with the fear of getting infected. This fear has, in turn, led to a dramatic rise of nearly 300% to 400% in its eCommerce sales.
Clearly, it wouldn’t have gotten this opportunity, had it been within the cocoon of an offline store.
Who needs an introduction to Kraft Heinz? It is the fifth-largest food company in the world, and there’s no doubt about it. Post the merger of Kraft and Heinz in 2015, the company gained a new vision and a touch of digitalization helped it realize its goal.
During the pandemic, when eateries faced the blow, Kraft Heinz made sure that it pushed maximum products using its online channel in customer’s space. In April-end, Kraft Heinz stock leaped a mark of a whooping 23%, and most of the sales were organic in nature–meaning the marketing expenditure to convert leads into customers was low.
According to a report, people are found to be using apps over 20% during lockdown than they would usually do.
Can you guess the most popular online businesses in COVID-19?
As per the first quarter of the year, social media apps remained the chart toppers. Among which—Tiktok, Facebook, Instagram, Facebook Messenger, and WhatsApp Messenger made it to the top five.
However, when it comes to the total time spent, online streaming apps have replaced these apps. The entertainment businesses also made sure to release content in the form of short films and web series to build a loyal audience. Amidst this zeal, it is the online streaming businesses that hosted their content and connected them with the audience.
Looking at an uptick in the number of subscribers and downloads, the reliance of online streaming businesses have only increased, in recent times. They have been striving to incorporate user-friendly features to beat their competitors.
Talking about how online businesses in COVID-19 have given a leeway to the audience to chill at the very comfort of their home, let’s talk about Netflix.
Well, Netflix needs no introduction. However, if there’s something to be said, it is that Netflix has taken over and revamped the arena of online streaming. With people being stuck at their places, Netflix has been a go-to means of entertainment.
If we go by the numbers, Netflix welcomed 15.8 Mn new users during the period of January to March. Addition of new series and movies has been playing instrumental to keep users hooked to the platform. Among these 15.8 new users, nearly 4.4 Mn users are from Europe.
Given the sharp increase in the competition, Netflix is looking at an expansion into new geographies, alongside integrating user-friendly features. Taking a more user-centric approach, Netflix joined forces with Google to launch a Chrome Extension that allows users to connect with their friends and watch shows together, virtually.
All-in-all, Netflix did make a profit from the lockdown. As a result, demand to develop a mobile app like Netflix and OTT app development in COVID-19 has only increased.
Previously available in a handful of geographies, Disney+ is soon to be launched in at least 15 countries. The online streaming platform especially has witnessed an uptick in the usage, as kids have no schools and parents have to find a way to keep them engaged.
During the period of January to April, Disney+ was able to cross the 50 Mn user mark. Launched in November 2019 along with Apple TV, Disney+ managed to acquire fourth position in the world of online video streaming, only after Netflix, Amazon Prime, and Hulu.
Well, individuals may not be able to dine in a restaurant or have a drink at a pub. However, they can still savour their food and drinks at their home, and we cannot help but thank the online delivery services.
Issues regarding the prevention of non-essential contacts and unnecessary moving out of the house have been publicized, but that has indeed favoured the restaurant businesses. Restaurants are able to cut down on their operational costs, since they only need a functional kitchen and not the dining area. Juice bars, cafes, pubs, snack centres, and other eateries have found a means to make an earning, and are looking to outsource online food delivery app development project.
With growing reliance on this ‘contact-free’ mode of food delivery, the demand for food pickup is only going to witness an acute rise. Yet another benefit that these food pickup and delivery service cohorts are experiencing is in terms of inclusion of grocery.
So, besides catering to the request for food, these services are also ensuring that customers get the groceries and other essentials. Most cities across the world have been locked down, and the opportunities for the boom of restaurant pickup and delivery service are in abundance.
Deliveroo is an online food delivery service company. Simply put, Deliveroo is Uber for food delivery. Deliveroo does have a website; however, the operations and the processing happens from the Android and iOS app.
In an ideal scenario, Deliveroo, just like the restaurant businesses should have been under the effect of COVID-19. However, the beauty of the digital business is that it is always up and running, regardless of the physical constraints. On similar lines, Deliveroo did grab the opportunity to maintain a steady influx of revenue. Besides catering to its existing customers, Deliveroo has taken an extra mile to ensure that no infection is passed from riders to customers. Having noticed the quality service, the UK govt. is considering a potential partnership with the company to deliver care packages to the elderly.
No wonder, the online food delivery business has been up by 11.5% as compared to the previous year, with Deliveroo setting the standards for the rest.
If there’s one thing that individuals are seeking during the pandemic, it is the ‘feel good’ factor. The social media feed is overwhelmed with recipes and pictures of food. Food is the comfort that individuals seek, amidst the ‘work from home’ scenario, since they cannot go out and unwind.
The lockdown scenario has favoured Blue Apron, which is an online fresh ingredient and recipe delivery service. The company provides its customers with a detailed recipe along with all the necessary ingredients. So when customers are tired of the instant food, it is the exotic recipes from Blue Apron that is gaining traction.
The good news is, Blue Apron’s stock has rallied over 98% during the last three months.
Thanks to the lockdown that the once-popular means of entertainment—going to malls, theatres, play zones, concerts, and partying—are no longer the options for people. However, some of the companies have come to the forth to redefine the concept of entertainment.
The term that you are looking for is—In-house Entertainment.
In recent times, live streams, virtual tours, digital releases, and online gaming are striving to satisfy the entertainment-hungry individuals. Yet again, the digital space is filled with an audience, while people in groups are banned on the streets.
The live streaming option integrated into social media apps such as Facebook and Instagram, is being used more than ever before. The NFL offered a free subscription to Game Pass, which gained significant traction from users. Others in the entertainment niche seemed to follow the suite and benefit out of the lockdown scenario. Sensing the profitability of online entertainment businesses, the pace of app development for entertainment industry has accelerated, in recent times.
For instance, Amazon Prime and Houseparty are serving entertainment at low or no cost at all.
Amazon is a brand with its businesses in different niche–prime music, shopping, grocery, prime video, and whatnot. Lockdown did impact the eCommerce segment of Amazon. Most of the essential items had been unavailable for the longest time, due to distorted supply chain.
However, the company zoomed in on its focus on its entertainment niche. Individuals subscribing for Amazon Prime Video received a free subscription of Amazon music. Besides this, Amazon stepped out from its territory of subscription model and offered over 40 free shows for kids.
This, in turn, has been a swift move to gain a new base of subscribers, and it indeed succeeded.
While the entertainment industry has all been only about streaming content, live or recorded, Houseparty brought in a fresh perspective of in-house entertainment. In a way, Houseparty is an online video-calling app. However, when you ask what it can do, the video-calling seems too trivial of a feature.
Launched back in 2016, Houseparty gained momentum during the pandemic, when self-isolation became a norm. The app allows people to socialize virtually, play games together, draw pictures, etc. During the COVID-19 lockdown, this group video app recorded 70X growth, and this shows how lockdown is not bad for all the businesses.
Now that you know which sectors have benefitted from the crisis, can you find out the common thread that is helping online businesses in COVID-19 to pull out profit?
You probably got it right. It’s the shift to the digital space.
These are uncertain times. Influence of COVID-19 can be here for a long time or may fade sooner than expected. All that we are trying to imply is that your revenue generation should be independent of the timeline of pandemic.
Want to know how your business can benefit amidst the pandemic just like these online businesses in COVID-19? Talk to our business executives directly to find out.
If not, we have some more profitable sectors coming in, in our next blog, to show you how they did it.