The COVID-19 has been boon and a curse on various startups of various sectors and niches.It has helped logistics and E- commerce site, whereas it has completely devastated the hospitality industry.
THE POSITIVE EFFECTS ON THE START UPS
1)ON LOGISTIC BASED STARTUPS -
All the start ups that were started for the prime reason or vision of providing logistics have significantly flourished during the COVID-19. As many buissiness without logistics or delivery option had to opt for them in order to provide their service.
2)ON E-COMMERCE STARTUPS —
As many countries were on lockdown worldwide . As the people couldn't go out of their houses so they had to order things online and due to this sudden increase in demand the stocks of many e commerce sites sky rocketed.
3)ON GROCERY AND MEAL KIT STARTUPS —
All of us realise the extent of danger of coronavirus. Most of us prefered ordering groceries online to stay safe from the danger and risk of corona virus. This has led to immense growth in the grocery and mealkit startups.
THE NEGATIVE EFFECTS ON THE STARTUPS
1)ON STARTUPS UNDER THE HOSPITALITY SECTOR —
THE HOSPITALITY SECTOR IS HUGE SO LETS DIVIDE IT INTO 4 PARTS.
a)THE FOOD AND BEVERAGE —
The F and B stands for food and beverage . The food and beverage industry has been hit really hard as people done prefer going to or ordering food from restaurants. most of the F and B start ups are facing sever losses
b)TRAVEL AND TOURISM —
The travel and tourism startups have been effected severely. As due to COVID all the travel destinations are shut down until 2021. So they have to survive with no revenue for 8 to 12 months
c)HOTELS and LODGING —
The hotel startups like OYO and AIRBNB have been devastated . As travel and tourism has been completely shut down ,it has effected hotel and lodging .As more than 60% of their annual revenue had come from travel and tourism
2)ON AVIATION STARTUPS —
Aviation is the worst-hit sector, with both international and domestic flights cancelled on account of lockdown and post- lockdown.
3)ON FINANCIAL STARTUPS —
With the COVID-19 pandemic leading to lower GDP growth for FY 2021 for all the nations throughout the world, the risk of a abrupt or sharp fall in loan growth is getting stronger.Therefore, there is a fear that the banks and money lending startups may see a rise in NPAs as COVID-19 has hit businesses strongly as several small and medium-scale industries are on the verge of collapsing.
This is it guys with every dark night comes a beautiful morning. So, lets hope for the best and move on.
