US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Uber Agreed to Acquire Postmates

The boom in eating in has spurred orders and sales in the nation’s nascent food delivery industry, as thousands seek to recreate the experience of eating at their favorite restaurant at home.

Thus, it is no surprise that the industry, which is still in its infancy, is seeing more consolidation as Uber Technologies announced on Monday its intention to purchase Postmates, a rival food delivery service. Uber sees the two companies as complementary in terms of both their geographic focus and their relationships with foodservice providers.

The transaction will boost the size of Uber’s Uber Eats business, which has been seeing exponential growth – in contrast to simultaneous sharp declines in the company's flagship ride-hailing unit, as stay-at-home orders and sharp reductions in travel for business and pleasure suppress the need for widespread transportation. It will also help position the company as a leading provider of “convenience services” ranging from rides, the delivery of meals and freight, and the provision of other needed services. As many US consumers continue to limit their trips out as coronavirus remains a threat to public health, more and more companies will look to bolster their presence in this segment of the economy.

According to The Freedonia Group’s National Online Consumer Survey conducted in May 2020, 30% of adults note that they are using restaurant delivery more because of the coronavirus pandemic and 51% note that they are using restaurant curb-side pick-up options more.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including new reports on Global Foodservice and Global Foodservice Single-Use Products. Additional information is also available in food reports available from The Freedonia Group’s sister publisher Packaged Facts, including Food Carryout & Delivery, Food Carryout & Delivery: Special COVID-19 Consumer Insights, and Food Market Outlook 2020: Home Cooking & Grocery Shopping in the Age of Coronavirus. Freedonia Custom Research is also available for questions requiring tailored market intelligence

  Covid-19      Food & Beverage      Services    

Senior Housing Market Adjusting to Post COVID-19 Reality

Until a few months, one of the more lucrative construction markets was that of senior housing. The rising population of older Americans – many of whom are relatively affluent – offered builders and other construction professionals with an opportunity to housing that provided the features for aging-in-place without necessarily sacrificing comfort or aesthetics. Many of these housing units were in senior communities that catered to the needs of the older Americans – some residences provided assistance to those with medical needs, while others simply offered seniors such social amenities as group outings and cultural events.

Then the COVID-19 pandemic hit.

Almost overnight, facilities that were once heralded as the pinnacle of senior living were regarded with suspicion as sickness and fatalities entered the picture. Many Americans tried to move older adults out of these residences, while potential future tenants stayed away. Indeed, a recent report shows just how deep the damage was to this sector: residency rates at assisted living and other similar facilities saw record low levels in May 2020.

Will the industry rebound?  Many are guardedly optimistic, citing:

  • the ongoing need for assisted living as more Americans grow older and require some level of help – while preferring to remain as independent as possible
  • the expectation that the COVID-19 will eventually recede
  • a high level of interest among “active adults” in living in communities better suited to their needs
  • industry efforts to ensure the health and safety of residents and workers, such as by adopting strict quarantine, visiting, and social distancing policies

For more information about senior housing and assisted living, check out the Freedonia Group’s publication, Elder Care Services in the US.  For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

  Construction & Building Products      Covid-19      Services