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Why all apps will converge into superapps
These days, we're all juggling a bunch of different apps on our phones for various needs – one for messaging friends, another for online shopping, yet another for handling finances, and so on. It's getting a bit chaotic, isn't it?
Imagine having just one app that lets you do pretty much everything – chatting with your buddies, buying that new gadget you've been eyeing, paying bills, and more, all from a single platform. Convenient, right?
According to Gartner forecasts, these super apps are going to be huge. They predict that by 2027, half the world's population will be using them! It's easy to see why they might become so popular – having all your digital needs met through one streamlined app is just so much simpler than juggling a dozen different ones.
Recent data from eMarketer highlights a significant shift in consumer behavior:
2019: Average of 21 apps installed per smartphone user
2023: Average dropped to 18.5 apps per user
This trend reflects a move towards favoring multi-functional platforms over numerous single-purpose apps. Users are increasingly seeking to streamline their digital experience, prioritizing convenience and efficiency.
In most content platforms, the catalog takes center stage. This is evident in OTT streaming services (like Netflix and Prime), on-demand music services (like Spotify and Apple Music), and even ebook platforms (like Kindle and Audible).
🌟 What is a Super App?
A super app is a multi-service digital platform that incorporates various functionalities into a single application. These might include:
Messaging and Social Media
Financial Transactions and Payments
E-Commerce and Retail
Ride-Sharing and Bookings
Super apps, by their very design, are masterclasses in efficiency, combining multiple services and functionalities into a single, streamlined platform. This consolidation is not only transforming user experience but also setting new standards for how technology can simplify our lives.
As of October 2021, there were around 3.2 million super app features globally. These platforms use a mix of proprietary tech and third-party APIs, creating an ecosystem within one app, saving time, enhancing performance, and boosting user engagement.
This centralization reduces the need to switch between multiple apps, saving time and reducing cognitive overload. It’s a simpler, more fluid way to navigate our digital chores.
Super apps have found fertile ground in the Global South, where their comprehensive service models address diverse user needs within a single platform. The success of these apps in these regions can be attributed to several unique economic and technological factors.
Penetration in Global East
Learnings and Insights
Super apps have found fertile ground in the Global South East, where their comprehensive service models address diverse user needs within a single platform. The success of these apps in these regions can be attributed to several unique economic and technological factors.
In many parts of the Global South East, internet penetration has been uneven. However, when individuals do access the internet, they often leapfrog directly to mobile usage, bypassing the desktop phase that characterized the early internet experience in more developed economies.
This mobile-first approach makes super apps incredibly appealing, as they consolidate multiple functions—social media, payments, shopping, and more—into one application.
This is not only convenient but also crucial in areas where downloading numerous apps isn't viable due to limited data plans or older mobile hardware.
Moreover, the learning curve associated with adopting new technology is significantly reduced with super apps. Instead of navigating multiple platforms, users learn one interface where they can access a wide range of services. This ease of use increases the adoption rate across varied demographic groups.
Economically, many consumers in these regions are price-sensitive and value the cost-effectiveness of bundled services. Additionally, the platforms themselves benefit from the "network effect"—as more people use the app, the value of being on the app increases, attracting more users and service providers.
Rise of Superapps in the West
Over the last decade, super-apps like WeChat, Alipay, and LINE have revolutionized the tech ecosystem in Asia by offering a wide array of services within a single platform. This trend contrasts sharply with the U.S. tech scene, where services remain fragmented across various apps and websites. However, recent statements from Western tech leaders like Elon Musk and Mark Zuckerberg suggest a burgeoning interest in replicating Asia's super-app model in the U.S.
Despite this success in Asia, the adaptation of super-apps in the U.S. faces several hurdles. American tech giants began their journey in a desktop-centric internet era, leading to a proliferation of specialized services rather than integrated solutions. For example, Google and Facebook evolved major functionalities like Google Maps and Facebook Messenger into standalone apps to maintain focus and manage growing infrastructural demands. Moreover, regulatory challenges and concerns about data privacy and antitrust issues further complicate this integration in the U.S. market.
Nonetheless, the shifting landscape—marked by regulatory changes, demographic shifts favoring digital integration, and technological advancements in AI and blockchain—suggests a gradual movement towards more integrated platforms.
While U.S. super-apps may not mirror their Asian counterparts fully, the trend indicates a move towards "super-ish" apps tailored to American consumer needs and regulatory standards. Thus, the future of U.S. tech may not see the rise of a single dominant super-app but rather a series of integrated platforms offering a diverse but interconnected range of services.
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© Jonah Jacob Eapen 2024