25/03/2020 0 Comment

How COVID-19 has affected Hyper-Local Delivery Services.

Storefronts are empty around the world due to Global Pandemic COVID-19.

Due to the emergency of ongoing Coronavirus Pandemic, Many major tech companies like Uber have announced new welfare policies that stated that any worker infected by the COVID-19 virus would be completely quarantined and will get paid leaves or compensation. Inspired by these initiatives, other Taxi App companies operating in other regions of the world discussed similar procedures to benefit those affected by coronavirus.

However not every company followed the suite. Many companies sent a brief message to their drivers that instructed the infected drivers to isolate themselves. 

Outbreak of COVID-19

“I thought, she’s pretty, but she doesn’t have any manners,” says Thongsuk Thongrat, the taxi driver who got infected by the Covid-19 virus from a tourist. The 50-year-old taxi driver from Thailand further shared his experience with the NY Times stating that a tourist who was tested positive for Covid-19 leaned forward to show him some photos of tourist spots on her mobile while they were stuck in traffic.

At that moment, she sneezed while talking with the driver spraying the contagion directly on his face. His interview spread like wildfire all over the world and alarmed several cabbies. Several ride-hailing companies made announcements to provide compensation to the quarantined drivers.

How coronavirus impacted Uber?

According to medical practitioners, two weeks are sufficient for quarantine or self-isolation for people affected by COVID-19. Uber further stated that employees who are infected would get 26 weeks of compensation and if a worker is unable to report for work during the course of the outbreak will not be penalized under no circumstances. 

Many drivers around the world continued to provide their services in spite of the outbreak. They wore masks and constantly disinfected their cabs to protect themselves and their customers.

The drivers in the Philippines had a hard time as they were instructed to wear face masks and to provide masks and sanitizes to passengers free of cost by The Land Transportation Franchising and Regulatory Board (LTFRB). And when the face masks were brought in huge quantities by the people across the country, it led to a huge demand in the market and forced the drivers to take a break from their work.

The National Taxi Association and National Private Hire Vehicles Association of Singapore stated that drivers are facing more than 25% decline and private drivers are facing more than 35% decline in revenue in the first week of February

The surge in demand for food delivery companies:

COVID-19 outbreak has dented the earnings of several businesses in the world as the infected cases have crossed 440,380 worldwide as of today, forcing the customers to stay indoors. But tables could turn for food and essentials delivery companies like UberEats and Bigbasket because though everyone stays inside, they still have to eat. The website traffic of grocery delivery companies also increased after the spread of coronavirus worldwide. 

Online food delivery companies like UberEats, WMT grocery, and other popular UberEats clone apps have reported an increase in user engagement as people were stranded inside their homes. The NPD Group reported a 20 percent increase in the growth of food deliveries as China crosses 80,000 infected cases. Food delivery is one of the successful businesses in China due to the high population in the country.

Entrepreneurs saw chances in this high population, and several of them adopted grocery apps for their company and are making a huge fortune out of it. 

Such apps were very much welcomed in China, making it one of the most successful businesses there. But no one ever thought of adding a feature in the UberEats clone script that the people started requesting as no one predicted this pandemic and have never experienced one such as this before. The reports that suggested the number of people who demanded “Non-Contact deliver” was more than 80 percent. They asked the delivery executives to leave the food package at their door or on a table so that they could maintain a safe distance between them.

 

Also Read : How Delivery Technology is keeping economies afloat through COVID-19.

More time at home results in increased short term revenues:

People around the world are concerned about the outbreak and choose to stay indoors, which comes as an advantage for food delivery companies. The increase in cases day by day around the world makes the service a matter of necessity rather than making it a convenience. People are taking up the way of “Social distancing” to avoid the spread of the Covid-19. Due to the risk of exposure tactics like closing schools, postponing social and sports events.

As a result, We will witness a rise in revenue of three main segments of On-Demand apps which are:

  • Groceries Delivery Application
  • Laundromat Services Application
  • Food Delivery Apps

Summing up:

In the wake of the COVID-19 epidemic, the rise in demand for services of the food delivery app also forces the companies to maintain a contamination-free service. They will have to carefully follow and implement the guidelines issued by the local and international health authorities as the situation escalates.

We advise you to wash your hands correctly as research suggests that only 5 percent of people in the world properly wash their hands. A three-second rinse won’t be enough to be free from the COVID-19 virus as washing hands is the key action to stay safe and one of the most basic acts of hygiene.

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