Zoom Video Communications — A threat to Aviation Industry?
Ever wondered who’s the biggest competition for the airline industry? It is companies like Cisco and Zoom, who connect the world virtually. As per an article on Investopedia — “Business travellers account for 12% percent of airlines’ passengers, but they are typically twice as profitable. In fact, on some flights, business passengers represent 75% of an airline’s profits.” However, Zoom has come up as a saviour in these trying times, where employees round the world are working from home and travel across all countries is prohibited.
Until past couple of weeks, everyone knew Zoom as an online interview conferencing tool, used by management graduates and other interviewees, for giving interviews as a part of their apprentice or incoming analysts programs.
I recently read a tweet which stated that Zoom’s market cap in 2019 was $18.8Bn vs Airlines in USA (Delta Airlines, United Airlines and Jet Blue) had a market cap of 78.1Bn. As of today, Zoom’s market cap stands at $44.5Bn vs Airlines has a market cap of $27.5Bn. Well that’s a humongous jump by a company which was listed in April, 2019 at a value of $16Bn.
Advantages of using Zoom:
1. Easy to Use: For a very long time, virtual meeting was a gruesome process, requiring a dial-in number with a passcode and connectivity not so great. However, Zoom does not require you to be tech-savvy. Just download the app, click on the shared link and you are in. It neither requires a dial-in, nor a passcode to enter the meeting.
2. Access from anywhere, anytime: You can use it on the go. Be it your iPad, phone or laptop, you can login in to meetings from anywhere at any time, if you have an active internet connection.
3. Economical and Authentic: Zoom is absolutely free to use; till the time you have 100 participants and meetings last for a maximum of 40 minutes. Of course, there are paid versions of the app providing premium features with more security and requiring higher employee count to join the meeting.
Moreover, it held up exceptionally well with regards to the bandwidth and data processing, in spite of surge in users in the past few weeks.
4. Enjoyable: Zoom has an entertainment quotient as well. Instead of showing a background where people stare at curtains behind you or a shabby wall, you can add your own background like a city view or blades of grass. Even though those features are not at all obligatory, it adds to the fun element.
We don’t know for how long will the lockdown last, but as long as apps like Zoom are in the markets, it makes remote workspace a pleasant and congenial affair.