By the time you’re living quarantine; you’ve heard and read a lot about how coronavirus is bringing the global economy to its knees. Although governments of all countries are continuously working to protect the global economy from the outbreak of coronaviruses, various industries are losing a heap of money with each passing day.

As per the report made by the UN Conference on Trade and Development, the impact of a coronavirus outbreak in the global economy can be seen at $ 1-2 trillion. And the fact that the coronavirus vaccine will not be ready to market before Christmas 2020 also severely affects market performance.

Responding to it, people have changed their consumption patterns, exhibiting new trends. Thus, we have come up with a blog series for our readers to make them aware about impact of Covid-19 on on-demand industry. And, how they can make smart business decisions of investing in this ever-growing industry.

Mixed Impact on On-Demand Economy: 

The adverse impact of the virus is real on wider scale that every segment of the on-demand industry has experienced an effect either it can be a taxi, retail, eCommerce, delivery apps, etc.

According to the report by Harvard, millions of people across the globe have been affected due to this virus, having no signs of stopping down till Christmas 2020.

The biggest problem with the on-demand industry is that people are not ready to digest delays in the orders they have made, and this is the universal law applicable to all types of on-demand services.

But, yes, few on-demand services are experiencing a boom. Services like grocery, food, and healthcare are getting traction as people are ordering more through on-demand apps. They are quarantined or working from home and are using on-demand services to meet their requirements.

Mobile Apps Mainly drives On-Demand Economy: 

Well, the entire on-demand economy is driven through mobile apps. The on-demand is growing at a rapid rate because of the proliferation of mobile apps. Apart from eCommerce and retail business, various B2C businesses are reaping the advantages of a growing on-demand economy. This firmly includes healthcare, hospitality, logistics, etc.

Stat also says that app download is going to upsurge with the time. According to TechCrunch, the top 10 apps in the food ordering category have increased by 68% from January 13 to February 3. Moreover, there has also been an increase in downloads of mobile games app. As per the reports by FT, users in China are downloading game apps in record apps. Due to the COVID-19 virus outbreak, people are living in quarantine at home. This has upsurge the demand of mobile game apps.

Opportunity for On-Demand Industry: 

People these days are staying and working at home. Corona outbreak has closed almost all types of traditional brick-and-mortar stores. This has increased the demand for online apps delivering groceries, food, healthcare services, medicines, etc. People are ordering these things online. So, this has increased the opportunity for the on-demand industry to grow more in these specific segments and serve better to the people in this tough time. Not just this, the entertainment industry and eLearning portals are also in huge demand. Overall, these segment will grow even in the long term, as the need for on-demand services are going to increase with the time even when Corona will go.

Now, let’s see those on-demand apps that are gaining traction because of the coronavirus outbreak: 

On-Demand Food Delivery App: With complete lockdown across the globe, physical stores are almost shut. People are opting for other ways like on-demand food delivery apps so that they can order the food online sitting at their home. US people are using the internet for their shopping and ordering food online. This has gained traction for on-demand food delivery apps. Moreover, online food delivery companies are also taking extra precautions and are ensuring virus-free food delivery at people’s places. On-demand food delivery companies like Uber eat waives the fees for independent restaurants during the COVID-19 pandemic.

On-Demand Grocery App: 

During the week of March 2, when US regions get imposed stricter social distancing rules in past weeks, Instacart, Amazon, Walmart grocery services experienced 65% higher sales compared to the same time last year, according to Earnest Research. Meanwhile, as more restaurants close their dining rooms, people are trusting on meal deliveries online from apps like DoorDash, UberEats, and Postmates.

This outbreak has led to panic, and people are purchasing the groceries and types of stuffs from various online stores as well.

As the COVID-19 pandemic has spread all over in the USA and across the globe, the grocery delivery apps are seeking considerable growth.

On-Demand Healthcare and Pharmacy App: 

Healthcare providers across the country are analyzing how connected care programs are for tackling the coronavirus, also called the COVID-19 threat.

Almost everyone sees this across the country as giving proper diagnosis for this flu. Some also see an opportunity for on-demand healthcare and pharmacy apps, saying this can enhance the value of telehealth and mHealth, by giving virtual services to the patients suffering from diseases.

On-demand healthcare and pharmacy apps are experiencing a surge in this pandemic time as it is useful in evaluating and reassuring patients alternatively and can help patients deciding who needs to admit in the hospital or who can get care virtually.

The current dependency on mobile healthcare app will help users to see its long-term benefits in accessing quick medical assistance. And thus, in the coming times, even after coronavirus gets contained, people will keep using these apps because of inherent flexibility and quick service.

On-Demand eLearning Apps: 

With the shutdown of almost all education institutions, schools, and colleges because of massive corona outbreak across the globe, on-demand eLearning apps are getting immense popularity as all are going online for learning.

Moreover, various educational institutions have announced that they are launching their eLearning portals so that students can sit remotely and learn what they are looking for.

Through booming virtual education platforms or eLearning apps, eyes-catching and innovative live streams are launched in various countries and their institutions across the globe.

In China itself, where the Corona outbreak is massive, schools have launched an online learning portal in more than 300 cities in provinces which includes, Jiangsu, Guangdong, Zhejiang, and Hubei with the help of DingTalk.

This epidemic is like a catalyst for various enterprises and schools to adopt digital technology platforms and products for eLearning.

On-Demand Entertainment Apps:

As governments across the globe have ordered the enterprises and organizations to make their people work from home, conferences are postponed, flights are canceled, and schools are closed, storefronts and restaurants have shut their doors, and people are at home quarantined, the world is using the mobile phones to stay connected.

For passing the time in China and Italy during the coronavirus epidemic, people are utilizing mobiles at this time due to the fact that they are encouraged or required to stay indoors – get information, continue working, entertain, build relationships and fill regular life gaps. This is the reason why entertainment apps are gaining immense traction, and people are installing it in their mobile phones to keep themselves entertained and energetic out of boredom.

TikTok, Amazon Prime, Netflix, Hulu, and Roku have emerged as the top installed on-demand entertainment apps. This is the clear indication that consumers are looking for out of box content providing entertainment apps expanding their catalog they have available with them.

On-demand apps that are facing adverse impact during coronavirus outbreak:

On-Demand Ride-sharing App:


Well, COVID-19, i.e., Corona has significantly impacted whether it can be bike, auto or a cab/ taxi booking services due to the fact that passengers are getting scared traveling and sitting in the taxi because of the fear of getting infected from a driver who rides and provides services to so many passengers in a day.

Moreover, drivers do not have an idea or knowledge of who is infected and who is not, especially when accepting to and fro rides at airports, railway stations, and bus stations. These are the reasons why taxi booking apps are facing adverse impacts during the coronavirus outbreak.

On-Demand Home Solutions :

The most adverse impact COVID-19, Corona has made, is on the unorganized sector or which we called as the gig economy. The people who work as a freelancer, whether they are plumber, carpenter, maid, and so on. On-demand home solutions, due to the outbreak, are experiencing downfall as people these days are avoiding to call anyone from outside for the work.


The overall impact reveals the on-demand economy is not going anywhere in the coming period. Few apps will be on a boom. Applications like on-grocery delivery, food-delivery, healthcare services, entertainment, and eLearning are performing because of increased online demand due to pandemic. While another segment, like a taxi booking app, home solution apps are experiencing downfall due to the fear in common people of COVID-19.

Panacea Infotech has expertise in developing on-demand solutions. Considering the current scenario and acting proactively to serve customers during the difficult times, we have ready-made solutions available with us that can be deployed in a week as per your business requirements. We have a dynamic team of experts who are capable of offering customized on-demand solutions readily. We also provide cloud-based solutions that help our clients to streamline their business operations from remote locations.

Email us at, and our professionals will provide end-to-end assistance in the best possible way.

Leave a Reply

Your email address will not be published. Required fields are marked *