The Tech Industry’s Winners and Losses During Lockdown

The coronavirus pandemic has squeezed some tech industries so bad, while others have actually seen a boost. It’s almost like a textbook case of being in the right place at the right time for some business. But others are just unlucky.

In this post, we discuss the winners and losers in the tech industry.

Winner: Collaboration Tools

Most businesses across the world are using collaboration tools to facilitate operations. This uptake has seen some lesser-known brands in this niche take off. And it has also exposed security threats in this technology. For example, Zoom and Slack were limited to development teams, just a few months back. Now, both of them have seen increased signups in the last three months. Zoom has gone from 10 million to a whopping 200 million active users.

Similarly, other collaboration tools such as Microsoft Teams and TeamViewer have reported more activity.

Winner: Gaming

Now that everybody has plenty of free time, gaming is becoming increasingly popular. For instance, the recently launched Call of Duty game, Warzone, has already hit 60 million users. It’s almost like they knew this lockdown would come. Or it’s a classic case of preparation meeting opportunity.

Online gaming, including casinos, has also seen a boost in numbers. People are signing up more than ever before.

Loser: House Sharing Tech

Travel has been one of the biggest hit industries by the ongoing lockdown. There are travel bans in almost every country, which only allows essential services to move around. Consequently, middlemen apps like Airbnb have taken a big hit. The company has even laid off a quarter of its workforce, amounting to 1,900 lost jobs.

Another example of a looser in this category is Yelp. Most of their revenue comes from running ads for small businesses, and that industry has stopped dead. Restaurants, theatres, and gyms are an example of the companies that advertise on this platform.

Loser: Ridesharing Apps

Ridesharing apps work in the same industry as house sharing tech. That means they have to make adjustments to accommodate the current lockdown. Uber, for example, has cut thousands of jobs in its offices worldwide. This move is aimed at reducing operational costs as the company’s revenue is almost non-existent. Now they have to go back to the drawing board and plan a new way forward. Even so, ride sharing is not going anywhere. It is a proven idea that will stick around for a long time.