Significant Impact of COVID-19 on the Ride Sharing in Semiconductors and Electronics Industry
COVID-19 Impact on the Ride Sharing in Semiconductors and Electronics Industry COVID-19 is a pandemic disease that has caused a severe outbreak in the world, beginning in China and in almost every region. As a result, demand and consumption levels are reduced, it has a significant effect on almost all including human life, world economy, automotive sector, manufacturing sector and others. The unavailability of the vaccine to treat or prevent the spread of the disease is a big reason why lockdown was introduced for prevention and to reduce the spread of COVID-19. To monitor the spread of the disease, lockdown is considered the best solution found in many countries so far, but it also has an adverse economic impact. More than 2 billion people were at the height of the pandemic under some sort of lockdown, and 91 percent of the world's population, or 7.1 billion people, live in countries with border controls or travel restrictions due to the virus. However, the factories are now beginning to re-open in almost every country by taking some precautions such as 20 percent - 50 percent field workers, social distancing, drastic hygiene initiatives and others to boost the economy. It strengthens the economy and helps to bring down the rate of recession at some point. COVID-19 highly impacted the transportation scheme. During time of social distancing, sharing ride together with transport has taken a distinct nature: travelers were asked to avoid travel unless it's completely necessary. The people travelling were requested to maintain social distancing. The pandemic highly impacted the growth of ride sharing market due to the new norm of physical distancing which forces people to opt for more personalized and sanitized services. However, the ride sharing market has noted a gradual decrease due to work from home policy that taken off the demand for cab services. IMPACT ON DEMAND AND SUPPLY CHAIN The pandemic brought a huge drop in sales for the ride sharing market as the lockdown prevailed in most of the regions. The lockdown led to people sit at home and not to travel until it is very necessary, also, travelling while taking all the social norms such as physical distancing. The demand for ride sharing services almost dropped down by 80% during the pandemic and the current year may not be able to see demand beyond 30%. Due to pandemic, people may hesitate for ride sharing which makes solo rides on demand. Post COVID-19, ride sharing market will see increased cost and low demand. The pandemic has also led to huge impact on the supply chain of ride sharing services as people may not feel comfortable. Also, the logistics and transportation of assets deteriorated a lot. The supply chain was adversely affected as the lockdown prevailed in many regions globally, government has limited the workers. The companies are making their operation work according to the government regulations by making limited workers work in different shifts. However, now there is an improvement in the supply chain as most of the facilities and travel restrictions have opened and working in the most optimum capacity. For instance, · In March 2020, Uber has hardly hid by the coronavirus as they have to do 70% fewer trips than usual due to low demand because of lockdown and self-isolating norm in various countries. This has led to huge loss for Uber. · In March 2020, Uber and Lyft drivers in the U.S. said that they have seen a huge decrease in the demand of ride sharing during the pandemic period. STEPS TAKEN BY MANUFACTURERS DURING COVID-19 SITUATIONS As the COVID-19 crisis continues to grow, the problems face by manufacturers on multiple fronts will be conceivable. Producing firms would be searching for immediate measures to stay their workforces safe and their businesses solvent. Manufacturers will have to be forced together to look at their economic feasibility on the other side. Since the COVID-19 pandemic is intensifying, it would be possible for manufacturers to face continued downward pressure on demand, production, and revenues. They will continually face liquidity cash flow problems and difficulties in handling debt obligations. After COVID-19, people may not feel safe to take ride sharing public transport. So gaining back the public’s trust for safe ride sharing is the major concern. The pandemic has boosted the growth of healthcare industries. Service providers need to focus on transportation of medical authorities, health line workers or essential service workers with all the extra safety measures as during the situation, there are limited options for transportation. Also, service providers must need to assure the people that they were taking all the public safety standards and even going the extra mile to make riders feel safe. For instance, · Government released guidelines for ride sharing service providers to adhere public safety during ride sharing. The guidelines include basic understanding things such as requiring drivers and riders to wear masks, making users aware of cleaning practices, cashless transaction and others which may impact the growth of ride sharing market in future. · Uber launches their new service named as ‘UberMedic’ especially for the transportation of health line workers and medical authorities. This service allows hospitals to easily arrange transportation for doctors and other health line workers. CONCLUSION From the above, it is evident that the ride sharing market is observing a huge downfall and low demand due to the COVID-19, while following governmental social norms such as travelling restrictions, physical distancing and others. Post COVID-19, when cities re-open, we will see more people requiring transportation for work. These people may go outside but not ready to take public transport or not ready to share a ride with unknown persons. This make personalized rides on demand. This will be the major challenge for the service providers to gain the trust of riders. Easing of lockdown restrictions by government, adhering to all the public safety norms, increasing adoption of cashless transactions are some of the factors driving the ride sharing market in the COVID-19 situation. Overall the ride sharing market is facing a huge downfall as social distancing regulations all over the world has taken away the truly ‘shared’ aspect of sharing a ride. Organizations operating under the ride sharing market need to build up new strategies and assure safety to the riders.