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What is Big Tech Contributing to Help Fight COVID-19?

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Big Tech COVID19 Financial Efforts

What is Big Tech Contributing to Fight COVID-19?

In the ongoing global crusade against COVID-19, everyone has a part to play. As the situation intensifies, the private sector has also been rallying to help governments and healthcare organizations cope with the situation, and U.S. tech companies are no exception.

With a combined market capitalization of over $4.7 trillion, the “FAAMG” Five—Facebook, Amazon, Apple, Microsoft, and Alphabet (Google)—wield immense influence on the economy, as well as the potential to impact lives during this challenging time.

The Biggest Moves by Big Tech

In today’s data visualization, we look at the financial contributions being made by Big Tech giants in response to the pandemic. The main categories that these actions fall into are:

  • Small businesses: Grants and ad credits
  • Media/News: Fact-checking and grants for local news
  • Healthcare: COVID-19 research and frontline support
  • Relief Efforts: Public safety and non-profit donations

What is each company pledging in financial efforts to relieve the strain on those affected most by the ongoing crisis?

Alphabet (Google)

Many people rely on Google to find reliable news and resources during the pandemic. Google’s parent company, Alphabet, has focused its financial support towards small businesses and healthcare researchers, mainly through offering millions of dollars in advertising credits.

CategoryAmountDetails
Small Businesses$340MGoogle ad credits for small businesses
$200MInvestment fund for NGOs and financial institutions to help small businesses
$20MAd credits for NGOs and financial institutions to help small businesses
$15MCash grants to non-profits to help small businesses
Media/News$6.5MFunding offered to Google News Initiative to support media outlets and fact-checkers
Healthcare$250MAd grants for WHO and 100+ global government agencies
$20MGoogle Cloud credits for researchers and academic institutions
Relief Efforts$5MDonations matched for COVID-19 Solidarity Response Fund, co-created by the UN Foundation and the WHO
Total: $856.5M

Google has also promised to ramp up the production of 3 million masks for the CDC Foundation. In addition, Google has partnered with Apple to create a secure and private contact-tracing tool to aid public health authorities.

Facebook

Facebook is another massive platform through which information—and misinformation—spreads quickly and easily. Especially in times of crisis, the spread of poorly-vetted information can have a severe impact on our health and well-being.

To try and combat this, the company is allocating funds towards fact-checking, as well as supporting local media outlets.

CategoryAmountDetails
Small Businesses$100MSmall Business Grants Program, for up to 30,000 businesses in over 30 countries
Media/News$75MMarketing to help publishers worldwide with declining ad revenues
$25MFacebook Journalism Project towards emergency grant funding for local news
$2MGrants and donations to fact-checking organizations e.g. International Fact-Checking Network (IFCN)
$1MGrants for local news
Healthcare$25MSupport for front line healthcare workers
Relief Efforts$10MDonations matched to the CDC Foundation
$10MDonations matched for COVID-19 Solidarity Response Fund, co-created by the UN Foundation and the WHO
Total:$248M

Facebook and Alphabet will together match up to $15 million in donations to the COVID-19 Solidarity Response Fund, which has raised over $127 million to date.

Amazon

During this unprecedented era of social distancing and lockdowns, the online retailer has become almost indispensable as ecommerce shoots up. Amazon has several initiatives on the go, including help to Seattle businesses and citizens, where its operations all started.

CategoryAmountDetails
Small Businesses$5.5MNeighborhood Small Business Relief Fund for over 400 Seattle small businesses
$1MCOVID-19 Response Fund, providing rapid-response grants to local businesses and vulnerable communities
Healthcare$20MAmazon Web Services (AWS) Diagnostic Development Initiative to speed up COVID-19 research
Relief Efforts$30M£24.5M (US$30M) provided to European non-profit and Red Cross organizations
$25MAmazon Relief Fund, dedicated to support independent delivery service partners and drivers
$10MAmazon Literary Partnership, an emergency initiative for artists and writers
$5MTotal donated in devices globally for healthcare workers and education efforts
$1MDonations matched to the non-profit Mary's Place
$1MTowards emergency response efforts in Washington, D.C.
Total:$72M

In addition, Amazon donated 800 laptops to public schools in the Seattle area, and has raised workers’ hourly and overtime pay. In early April, CEO Jeff Bezos also donated $100 million to Feeding America, a non-profit food bank.

Microsoft

Technology is playing an immense role in tracking COVID-19 and the progress we’re making to end it. As a result, Microsoft is directing its financial efforts towards its AI for Health program.

CategoryAmountDetails
Healthcare$20MAI for Health initiative commitment to focus on front-lines of research
China-specific Relief$6.5M¥46M (US$6.5M) donated in cash and tech support for China’s fight against the virus
Relief Efforts$1MCOVID-19 Response Fund, providing rapid-response grants to local businesses and vulnerable communities
Total:$27.5M

On top of these, Bill Gates officially stepped off the board of Microsoft in mid-March to focus on philanthropic efforts. The Gates Foundation has poured $100 million into funding for coronavirus research, and plans to pump billions more dollars into research in the coming weeks, to speed up vaccine development and manufacturing.

Apple

Finally, Apple is putting all its donations towards supporting public relief efforts, both in China and other affected parts of the world.

CategoryAmountDetails
Relief Efforts$15MDonations committed to global response efforts
China-specific Relief$7M¥50M (US$7M) donated to China’s long-term public health recovery efforts
Total:$22M

Further, Apple has donated 20 million masks to health workers, and aims to manufacture 1 million face shields per week.

Together, Microsoft and Apple contributed $2 million to the Seattle-based COVID-19 Response Fund, which has racked up $15.7 million in total donations to-date.

How the $1.25B Breaks Down

Looking at the information another way, how much money is flowing towards the various contribution categories?

Small businesses are the biggest beneficiaries of Big Tech’s economic relief, and understandably so—they are one of the most affected entities in the crisis. Healthcare research is also getting a boost, with funds focused on advancing potential treatments and vaccines in the pipeline, and supporting healthcare workers in the trenches of the pandemic.

CategoryCompany BreakdownTotal Amount
Small BusinessAlphabet: $575M
Facebook: $100M
Amazon: $6.5M
$681.5M
Media/ NewsFacebook: $103M
Alphabet: $6.5M
$109.5M
HealthcareAlphabet: $270M
Facebook: $25M
Microsoft: $20M
Amazon: $20M
$335M
Relief EffortsAmazon: $72M
Facebook: $20M
Apple: $15M
Alphabet: $5M
Microsoft: $1M
$113M
China-specific ReliefApple: $7M
Microsoft: $6.5M
$13.5M
Total:$1,252.5M

As a majority of work and socializing migrates online, Big Tech has the most to benefit from the current situation. Their positive efforts to lend a helping hand may well be a strategy for uplifting their poor reputation in the media—but is it enough?

Some might argue that for these Big Tech companies, $1.25 billion is just a drop in the bucket. In fact, other Silicon Valley players are single-handedly matching these contributions, such as Twitter’s CEO Jack Dorsey who pledged $1 billion of his own equity towards relief efforts and education.

However, that’s also not to imply that these financial efforts are the only actions taken by the five companies in question. Many of them are building critical educational and data-driven technological solutions to help mitigate the COVID-19 situation as it unfolds.

It also goes without saying that the applications they’ve created are helping us remain connected and supported—making life in lockdown a little bit easier.

All data as of Apr 12, 2020. Many thanks to our community who sent in requests for this content.

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Chart of the Week

Visualizing the Countries Most Reliant on Tourism

With international travel grinding to a halt, here are the economies that have the most to lose from a lack of tourism.

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Visualizing the Countries Most Reliant on Tourism

Without a steady influx of tourism revenue, many countries could face severe economic damage.

As the global travel and tourism industry stalls, the spillover effects to global employment are wide-reaching. A total of 330 million jobs are supported by this industry around the world, and it contributes 10%, or $8.9 trillion to global GDP each year.

Today’s infographic uses data from the World Travel & Tourism Council, and it highlights the countries that depend the most on the travel and tourism industry according to employment—quantifying the scale that the industry contributes to the health of the global economy.

Ground Control

Worldwide, 44 countries rely on the travel and tourism industry for more than 15% of their total share of employment. Unsurprisingly, many of the countries suffering the most economic damage are island nations.

At the same time, data reveals the extent to which certain larger nations rely on tourism. In New Zealand, for example, 479,000 jobs are generated by the travel and tourism industry, while in Cambodia tourism contributes to 2.4 million jobs.

RankCountryT&T Share of Jobs (2019)T&T Jobs (2019)Population
1Antigua & Barbuda91%33,80097,900
2Aruba84%35,000106,800
3St. Lucia78%62,900183,600
4US Virgin Islands69%28,800104,400
5Macau66%253,700649,300
6Maldives60%155,600540,500
7St. Kitts & Nevis59%14,10053,200
8British Virgin Islands54%5,50030,200
9Bahamas52%103,900393,200
10Anguilla51%3,80015,000
11St. Vincent & the Grenadines45%19,900110,900
12Seychelles44%20,60098,300
13Grenada43%24,300112,500
14Former Netherlands Antilles41%25,70026,200
15Belize39%64,800397,600
16Cape Verde39%98,300556,000
17Dominica39%13,60072,000
18Vanuatu36%29,000307,100
19Barbados33%44,900287,400
20Cayman Islands33%12,30065,700
21Jamaica33%406,1002,961,000
22Montenegro33%66,900628,100
23Georgia28%488,2003,989,000
24Cambodia26%2,371,10016,719,000
25Fiji26%90,700896,400
26Croatia25%383,4004,105,000
27Philippines24%10,237,700109,600,000
28Sao Tome and Principe23%14,500219,200
29Bermuda23%7,80062,300
30Albania22%254,3002,880,000
31Iceland22%44,100341,200
32Greece22%846,20010,420,000
33Thailand21%8,054,60069,800,000
34Malta21%52,800441,500
35New Zealand20%479,4004,822,000
36Lebanon19%434,2006,825,000
37Mauritius19%104,2001,272,000
38Portugal19%902,40010,197,000
39Kiribati18%6,600119,000
40Gambia18%129,6002,417,000
41Jordan18%254,70010,200,000
42Dominican Republic17%810,80010,848,000
43Uruguay16%262,5003,474,000
44Namibia15%114,6002,541,000

Croatia, another tourist hotspot, is hoping to reopen in time for peak season—the country generated tourism revenues of $13B in 2019. With a population of over 4 million, travel and tourism contributes to 25% of its workforce.

How the 20 Largest Economies Stack Up

Tourist-centric countries remain the hardest hit from global travel bans, but the world’s biggest economies are also feeling the impact.

In Spain, tourism ranks as the third highest contributor to its economy. If lockdowns remain in place until September, it is projected to lose $68 billion (€62 billion) in revenues.

RankCountryTravel and Tourism, Contribution to GDP
1Mexico15.5%
2Spain14.3%
3Italy13.0%
4Turkey11.3%
5China11.3%
6Australia10.8%
7Saudi Arabia9.5%
8Germany9.1%
9United Kingdom9.0%
10U.S.8.6%
11France8.5%
12Brazil7.7%
13Switzerland7.6%
14Japan7.0%
15India6.8%
16Canada6.3%
17Netherlands5.7%
18Indonesia5.7%
19Russia5.0%
20South Korea2.8%

On the other hand, South Korea is impacted the least: just 2.8% of its GDP is reliant on tourism.

Travel, Interrupted

Which countries earn the most from the travel and tourism industry in absolute dollar terms?

Topping the list was the U.S., with tourism contributing over $1.8 trillion to its economy, or 8.6% of its GDP in 2019. The U.S. remains a global epicenter for COVID-19 cases, and details remain unconfirmed if the country will reopen to visitors before summer.

Travel and tourism contribution to GDP in absolute terms

Meanwhile, the contribution of travel and tourism to China’s economy has more than doubled over the last decade, approaching $1.6 trillion. To help bolster economic activity, China and South Korea have eased restrictions by establishing a travel corridor.

As countries slowly reopen, other travel bubbles are beginning to make headway. For example, Estonia, Latvia, and Lithuania have eased travel restrictions by creating an established travel zone. Australia and New Zealand have a similar arrangement on the horizon. These travel bubbles allow citizens from each country to travel within a given zone.

Of course, COVID-19 will have a lasting impact on employment and global economic activity with inconceivable outcomes. When the dust finally settles, could global tourism face a reckoning?

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COVID-19

How U.S. Consumers are Spending Differently During COVID-19

How has COVID-19 transformed consumer spending trends so far? We look at credit and debit card spending of 5 million U.S. consumers across 18 categories.

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In 2019, nearly 70% of U.S. GDP was driven by personal consumption.

However, in the first quarter of 2020, the COVID-19 pandemic has initiated a transformation of consumer spending trends as we know them.

Consumer Spending in Charts

By leveraging new data from analytics platform 1010Data, today’s infographic dives into the credit and debit card spending of five million U.S. consumers over the past few months.

Let’s see how their spending habits have evolved over that short timeframe:

How U.S. Consumers are Spending Differently During COVID-19

The above data on consumer spending, which comes from 1010Data and powered by AI platform Exabel, is broken into 18 different categories:

  • General Merchandise & Grocery: Big Box, Pharmacy, Wholesale Club, Grocery
  • Retail: Apparel, Office Supplies, Pet Supplies
  • Restaurant: Casual dining, Fast casual, Fast food, Fine dining
  • Food Delivery: Food delivery, Grocery Delivery, Meal/Snack kit
  • Travel: Airline, Car rental, Cruise, Hotel

It’s no surprise that COVID-19 has consumers cutting back on most of their purchases, but that doesn’t mean that specific categories don’t benefit from changes in consumer habits.

Consumer Spending Changes By Category

The onset of changing consumer behavior can be observed from February 25, 2020, when compared year-over-year (YoY).

As of May 12, 2020, combined spending in all categories dropped by almost 30% YoY. Here’s how that shakes out across the different categories, across two months.

General Merchandise & Grocery

This segment saw a sharp spike in initial spending, as Americans scrambled to stockpile on non-perishable food, hand sanitizer, and toilet paper from Big Box stores like Walmart, or Wholesale Clubs like Costco.

In particular, spending on groceries reached a YoY increase of 97.1% on March 18, 2020. However, these sudden panic-buying urges leveled out by the start of April.

 Feb 25, 2020 YoY SpendingMay 5, 2020 YoY SpendingOverall Change
Big Box+14.2%-1.5%-15.7%
Grocery+1.0%+9.4%+8.4%
Pharmacy-3.6%-23.8%-20.2%
Wholesale Club+13.0%+2.6%-10.4%

Pharmaceutical purchases dropped the most in this segment, possibly as individuals cut back on their healthcare expenditures during this time. In fact, in an April 2020 McKinsey survey of physicians, 80% reported a decline in patient volumes.

Retail

With less foot traffic in malls and entire stores forced to close, sales of apparel plummeted both in physical locations and over e-commerce platforms.

 Feb 25, 2020 YoY SpendingMay 5, 2020 YoY SpendingOverall Change
Apparel-5.6%-51.9%-46.3%
Office Supplies-8.9%-2.8%+6.1%
Pet Supplies+2.7%-18.5%-21.2%

Interestingly, sales of office supplies rose as many pivoted to working from home. Many parents also likely required more of these resources to home-school their children.

Restaurant

The food and beverage industry has been hard-hit by COVID-19. While many businesses turned to delivery services to stay afloat, those in fine dining were less able to rely on such a shift, and spiraled by 88.2% by May 5, 2020, year-over-year.

 Feb 25, 2020 YoY SpendingMay 5, 2020 YoY ChangeOverall Change
Casual Dining-2.7%-64.9%-62.2%
Fast Casual4.2%-29.6%-33.8%
Fast Food2.0%-20.9%-22.9%
Fine Dining-18.6%-88.2%-69.6%

Applebees or Olive Garden exemplify casual dining, while Panera or Chipotle characterize fast casual.

Food Delivery

Meanwhile, many consumers also shifted from eating out to home cooking. As a result, grocery delivery services jumped by over five-fold—with consumers spending a whopping 558.4% more at its April 19, 2020 peak compared to last year.

 Feb. 25, 2020 YoY SpendingMay 5, 2020 YoY SpendingOverall Change
Food Delivery+18.8%+67.1%+48.3%
Grocery Delivery+23.0%+419.7%+396.7%
Meal/ Snack Kit+7.0%-5.9%-12.9%

Food delivery services are also in high demand, with Doordash seeing the highest growth in U.S. users than any other food delivery app in April.

Travel

While all travel categories experienced an immense decline, cruises suffered the worst blow by far, down by 87.0% in YoY spending since near the start of the pandemic.

 Feb 25, 2020 YoY SpendingMay 5, 2020 YoY SpendingOverall Change
Airline-7.7%-99.1%-91.4%
Car Rental-6.3%-86.0%-79.7%
Cruise-18.7%-105.7%-87.0%
Hotel-7.0%-85.9%-78.9%

Airlines have also come to a halt, nosediving by 91.4% in a 10-week span. In fact, governments worldwide have pooled together nearly $85 billion in an attempt to bail the industry out.

Hope on the Horizon?

Consumer spending offers a pulse of the economy’s health. These sharp drops in consumer spending fall in line with the steep decline in consumer confidence.

In fact, consumer confidence has eroded even more intensely than the stock market’s performance this quarter, as observed when the Index of Consumer Sentiment (ICS) is compared to the S&P 500 Index.

Consumer Sentiment Index

Many investors dumped their stocks as the coronavirus hit, but consumers tightened their purse strings even more. Yet, as the chart also shows, both the stock market and consumer sentiment are slowly but surely on the mend since April.

As the stay-at-home curtain cautiously begins to lift in the U.S., there may yet be hope for economic recovery on the horizon.

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