HOW 5G IS GOING TO THE CHANGE MOBILE APPLICATIONS FOREVER
Xpertyst / Dec 16, 2020
Xpertyst / Sept 02, 2020
LIST OF POPULAR MOBILE APPLICATIONS THAT HAVE BEEN SEVERELY HIT DURING COVID-19
Covid-19 has not only seeped into society and has left lakhs of people infected all over the world, but it has also had some adverse effects on some businesses and their mobile applications. Several features of mobile apps were left to rot in some corners of everyone’s device and faced the wrath of this deadly disease.
Consumer behavior has been affected due to the spread of coronavirus, and this has led to severe losses of some businesses. From the taxi services, to travel apps, food delivery apps, and On-demand service apps, all have come under the rage of this disease.
How were the app users impacted by COVID-19?
- Industries like car rentals, on-demand service, hospitality, and travel came to a standstill, and people completely cut off from their mobile applications during the times of COVID-19. However, there was an increasing demand for online services for fitness. One of the best fitness apps that saw a sharp rise in its installs, 8Fit (Berlin-based) saw a rise in its users with each passing week and became one of the top-rated applications on the app store in no time. They provided free services to users.
- Another app to hit the roof with the increasing number of installs is the meditation app 7Mind. Apart from the user activity, which was higher in the initial months of 2020, the app also saw a higher number of installs on various devices.
- Gaming apps did tremendously well in most countries at this time. Similarly, the Compettia (Atrivity) app which is known as a gaming platform, also witnessed growth during this period.
- Babble, is another app that witnessed growth during Covid-19. It is a subscription-based language app that has 14 pre-installed languages in it.
Categories of apps that have seen a decline:
- Travel
- Finance
- On-demand apps
- Taxi
- Food delivery
Let us talk about each industry in detail.
Taxi industry
This is one industry that has faced the adverse effects of Coronavirus all across the globe. Since people are asked to stay inside their houses and refrain from going out, no one is availing the services of taxis, as they don’t have to commute anywhere. Along with this, another issue to add up to the fall of demand for taxis is the concept of work from home. Companies and offices have emptied out and asked their staff to work from their homes so that they refrain from contaminating the virus. This has resulted in less demand and loss of jobs.
Let’s talk about China, where the virus originated. The cab services went down by 50 percent in the country. Yellow cabs in the U.S. dropped their fares by two-thirds, but still didn’t see any ray of hope. Some other major hailing companies Uber and Lyft also saw a downward trend in the bookings made through their apps. The use of the apps reduced invariably.
The overall drop in the app session
There has been a significant drop in the app sessions of the Onde client. On average an iOS user’s time spent on the taxi apps has dropped down by 70 percent. Comparing the usage of these apps in February and March, the use of app decreased by a total of 70 percent. Well, this is an aggregate figure, however, the usage of each app country-wise has some other figures to display. While the usage of some has decreased by 50 percent, some have witnessed a major downfall with a decrease in the usage by 90 percent.
As per the government instructions, people should use a minimum of the public transport, therefore the use of taxi apps has diminished, however, people haven’t permanently deleted these applications and might start using these once it is done dealing with the pandemic, and things start falling into place.
Users are on a break
It is not that the users have deleted apps like Uber, Ola, and other car rentals, they are just taking a hiatus from their services and will resume taking the services once things get back to normal.
Now take a look at the sales and apps usage impacted to a really high extent by the new novel coronavirus (Covid-19)
Uber has been a top favorite app for local commuting in most countries. As seen in the graph above, the app has tried to retain its position of either number 1 or number two. However, in the early months of 2020, it saw a fall in position as it became the 17th app from the top, and going further it witnessed another major fall to the 84th position in the overall app ranking. This proves how on-demand apps have been affected. There are no new installs of the app and the app has come to a standstill as people have stopped using the app.
Another example we can take is that of Air China, which has seen a huge downfall again. Take a look at the ranking of the airlines:
Impact of Covid-19 on travel apps
The travel industry has been gravely affected by the current situation. People have been laid off as the industry isn’t able to recover all the money spent and are not in a position to pay to their employees. Therefore, the last resort for them was to lay off people. With very little new bookings, there is no scope for them to do any better in the near future. The industry will take time to recuperate. Most travelers wanted the traveling apps to provide prominent tips and travel guidelines according to the latest details of Covid-19.
According to a report in statista, the following points were determined:
1. Travel related smartphone applications reduced considerably by the end of month April.
2. There were only eight percent of app users who actually used the app to make bookings from January 13, 2020, to February 2, 2020.
3. By April 2020, there was only 2 percent of the users left to use the app.
Take a look at the Statista graph to explain the numbers:
The tourism industry was the worst affected during the lockdown as the flights came to a standstill and people weren’t allowed to leave their houses without a pass and proper information submission. The hotel and travel sectors went into shudders which lead apps like MakeMyTrip and TravelTriangle run in huge losses, laying off its employees as it made no revenue through new bookings.
In a note written to Finance Nirmala Sitharama, co-chairman of Ficci national tourism council and secretary, Hotel Association of India, J K Mohanty, “While the industry has received the moratorium for three months, however, it needs a minimum of a one-year moratorium on all working capital, principal, interest payments, loans, and overdrafts. Collateral and interest-free loans up to five years for SMEs (small and medium enterprises) in tourism, which will help them, sustain and rebuild.”
While this was the scenario in India, most other nations like Italy, Spain, U.S., U.K., were among the other the face the wrath of Covid-19.
Impact of Coronavirus on Food delivery apps
The third major sector to be hit by the Covid-19 pandemic is the food sector. The food delivery applications soon saw a decline in users and sales as the country entered lockdown. People started becoming more skeptical about ordering food from outside as the delivery boys might be corona carriers or be infected themselves. With some cases of these delivery people becoming affected with coronavirus came forth, people become all the more scared to order food online.
Along with the behavioral changes among the users, the food delivery apps came to a standstill with the government imposing strict restrictions on any sort of movement in the country.
There has been a considerable fall in the food delivery apps, and let’s take Instacart for example. It retained the 229th position, which was a huge fall from the 25th position, which it enjoyed before the economy was hit by Covid-19.
Take a look at the graphical representation for the same:
Take a look at the revenue drivers of the food delivery applications:
Now take a look at the revenue growth drivers of the food delivery business:
1. Number of customers they have on their application. This one explains the number of orders placed by the customers on the apps.
2. orders placed by each customer.
3. Take rate: These are the commission rates for each restaurant.
4. The gross merchandise value.
How has Covid-19 impacted the on-demand apps
The on-demand app was not far from suffering an economic crisis during these trying times. Many on-demand apps have lost. A large amount of their regular customers stopped using their services during lockdown and later, as they were scared of catching the virus from the service providers.
One of the most popular on-demand service apps Urban Company also came to standstill when people stopped using their services. Take a look at the services provided by Urban Company:
1. Spa
2. Beauty
3. Grooming
4. Repairs
5. Cleaning
6. Painting
7. Electricians
8. Plumbers
9. Health training
10. Yoga instructors
The major sectors that got unpleasantly affected during the Covid-19 pandemic include the likes of:
Auto: There has been a tremendous amount of loss of jobs, that have led to incomes hitting the rock bottom, which has resulted in the reduced demand of automobiles and its part. People no more bought new cars as there was no need for them to get out of their houses.
Hospitality: With no guests coming to stay in hotels and no new bookings, there was a downfall in the sector, resulting in layoffs and releasing of hospitality and staff that was not required. Lack of staff and the compulsory lockdown triggered a downfall in this sector.
Aviation and tourism: As the lockdown was imposed by the governments of most of the countries, travelling and aviation industry came to a standstill. There was a restriction on air travel and people were not allowed to book hotels or travel to other cities. These leisure travel restrictions caused a major setback to this sector.
Apparel: Because of the lockdown there was a restricted demand in the industry of apparel and the sector also suffered low availability of labor and raw materials. This is the reason why the online sale so of apparel came to a standstill. There were no means of getting products delivered to the customers, therefore the clients refrained from making any new orders. This leads to restricted online orders and purchases.
Building and construction: Another major sector that has been facing challenges like lack of sales and low supply of resources is the building and construction industry. There is no labour available at this time and the government did not allow the labour to work at this time.
The world has come to a halt and big game players of each industry have also come under the hammer. It’s time to ponder over ways to get the work flow back on track with the available resources.
Changes in the ad spent industry
Just like he apps that started down performing, the ad spent also reduced to a great extent, leading to some of the biggest players in the app industry suffering loses. Take a look at the amount spent by companies on ads:
If you examine the graph closely, you will witness a growth trend in the games segment, whereas, the productivity and entertainment categories seem to be diminishing. Looking at the segregation of apps country wise, there has been a significant rise and fall in the apps of countries in Asia. Productivity apps topped the ranks in December and January. Let’s look at the apps that took over the productivity apps in certain countries:
1. In Korea, the productivity apps were replaced by lifestyle and Health and Fitness application in the month of March.
2. Japan saw a rise in the game apps in February, which broke the track record of all productivity apps.
3. Europe was a continent which again saw a rise in the games category for two quarters, however, it was only in France that the Productivity apps outperformed the rest in February, but it was also dominated by games and entertainment in the following month.
4. Germany saw a rise in the rank of entertainment apps throughout January. It was put on rank 2, while the productivity apps ranked number 3. The apps that suffered the biggest loss of all time in Germany were the weather apps.
5. The books apps were ranked last in France in the past few months, whereas the news and shopping apps ranked above the rest.
6. North and South America saw a rise in the installs of news apps in February and March, however the games apps are still on top.
Now take a look at the ranking of the smartphone apps in France according to a statista report:
Most downloaded apps on the Google Play store after the Covid-19 oubreak France 2020
Published by Statista Research Department, May 25, 2020:
On the contrary there are several applications which have witnessed a significant growth during this time.
Take a look at the new ideas people have come up with to keep the ball rolling:
1. Since we have friends that are now long lost, apps have come up with ideas to arrange house parties on video apps, where you can connect with a number of people at the same time and enjoy their company. From virtual wedding to virtual baby showers and birthday parties, everything has become a part of the digital world. Social distancing has brought everyone close on social media.
2. Job interviews are no more held in person, as people are now applying for jobs like as they used to before, but are being interviewed on video apps. Video conferencing has also become the new big deal in the industry.
3. Movies are now being live streamed for movies buffs as they cannot step out, or go to the theatres like old times to enjoy a movie.
4. Even the celebrities are coming close to their fans as they are doing live concerts from home, which is being viewed by millions of people from the comfort of their homes.
Take a look at the new ideas people have come up with to keep the ball rolling:
1. We have relatives and friends that we want to get in touch with every now and then. Several apps have come up with ideas to arrange house parties on video apps, where you can connect with a number of people at the same time and enjoy their company. From virtual wedding to virtual baby showers and birthday parties, everything has become a part of the digital world. Social distancing has brought everyone close on social media.
2. Job interviews are no more held in person, as people are now applying for jobs like as they used to before, but are being interviewed on video apps. Video conferencing has also become the new big deal in the industry.
3. Movies are now being live streamed for movies buffs as they cannot step out, or go to the theatres like old times to enjoy a movie.
4. Even the celebrities are coming close to their fans as they are doing live concerts from home, which is being viewed by millions of people from the comfort of their homes.
Wrapping up
Covid-19 has come as a warning to most apps that things are not permanent and there should always be a plan B in time of crisis. However, these app companies and industries are always thriving to compete with others and find a way through. Although there are several industries that have been adversely affected by the virus, they have their ways of coping up in the times to come. Every app is ready to take this as a challenge and offer something new to its customers so that they are back in action and in competition once the pandemic is over.
Xpertyst is a Mobile app development company and is developing different types of mobile applications from the last few years and have extensive knowledge of domain features, if you are looking for app development services, write us at [email protected].
