The ongoing pandemic continues to cause havoc across the globe with millions ill and hundreds of thousands dead. Over the last couple of weeks, the crisis has proven to be even more deadly with almost every market reeling causing fears of a global recession which some even argue is here upon us already.
In Kenya, things are no different where economic questions continue to be asked as much as the ones to do with health. Companies are drowning in losses as the current situation has rendered most of them to shut down operations and have employees stay at home.
Even for the ones still in operation, it is still not the same when it comes to finances as sales have dropped drastically.
Well, a report from Nendo, a digital growth consultancy and market research firm released a report actually show that some companies surprisingly seem to be having a good time as many others suffer.
You would, of course, expect the public transport sector to be hit the most now that movement restrictions are in place. With most people also being forced to stay at home, the traditional public sector is obviously expected to see even a worse time from here.
Ride-hailing companies would also be hit heavily with significant rides per day being experienced already. The ongoing curfew order has also been a huge cause as most of these rides are ordered as an alternative to matatus late at night. The same case is for travel websites that are seeing little to no orders with the partial lockdown that has everyone not travelling as much as before all this happened.
Inter-county travel has been limited in respective counties for a 21-day period. Consequently, tour bus, shuttle, and fleet operators may experience lower demand if more stringent ‘lockdown’ measures are put in place.
However, Boda Boda apps are expected to gain in prominence as Kenyans seek logistical solutions. This would be reasonable since the movement restriction form county to county renders people to not move around as much. And even with riders situated closely to residential areas, it would be more probable for Kenyans to use them more.
E-commerce has of course taken over the retail industry as people continue to purchase more from online stores. This does mean that physical stalls, shops and malls will face the wrath. It is obviously a huge bummer to Mama Mbogas who solely depend on the number of purchases they make every day.
Stalls and microenterprises in the busy Central Business District may experience less footfall and sales as consumers spend on essentials, non-perishables, and fast moving consumer goods.
But it is clear that players like Jumia, Kilimall and more are out there with some of them looking to be more dependable than ever. It’s evident from the likes of Uber eats that has now begun providing essentials goods in partnership with Tuskys.
Telcom companies and ISPs are also seeing their best days with the current rise in demand for internet services. With everyone at home, we all want to have our uninterrupted experience in the cloud working, surfing, streaming movies and even gaming. It’s proven even more by a recent report stating that internet usage in the country has spiked by 200%.
This is not to say that it has already brought some consequences relating to a strain on the country’s bandwidth. Nevertheless, this coincides with the rise in demand for entertainment that brings in companies like Netflix, Showmax and Viusasa reaping heavily. Similarly, social media platforms are also seeing figures unlike ever before with millions of active users per day.
The education sector has also seen a huge shift now that the normal curriculum has been flipped over completely. This then leaves online platforms to take over and present parents with options for taking control of their kids’ education during this period.
Teachers are additionally being recognised for their efforts and digital tutoring
through video is growing in demand.
Video conferencing apps have also seen a rise in demand as lecturers seek to hold online classes with their college students. This is very helpful for courses that require frequent meetings, such as MBL distance learning.
Basically, every traditional method of doing things is starting to change and is expected to do so with time. It is clear by now that online platforms are seeing their best times with people preferring not to acquire goods or services physically any more. But what does this mean for those that seriously can’t seem to move to the internet life of doing stuff?