Changing preferences cause ‘super apps’ to struggle in growing economies
By MYBRANDBOOK
As demonstrated by JustDial's struggles and Tata Neu's lacklustre performance, super apps are now facing challenges in emerging markets. Consumers now prefer brands with a single and clear USP. Low switching costs are said to be a primary factor behind this trend.
While Swiggy Instamart operates within the Swiggy app, Blinkit remains separate from Zomato. Some people say a single app reduces clutter and saves time, but the question definitely arises what will happen to the super apps in the long term.
A super-app is also known as an everything-app. It’s a mobile or web application that can provide multiple services including payment and instant messaging services, effectively becoming an all-encompassing self-contained commerce and communication online platform that embraces many aspects of personal and commercial life.
Tencent's WeChat in China, Tata Neu in India, and Grab in Southeast Asia, are notable examples of super apps that provide a set of core features while also giving access to independently developed mini apps.
Market saturation is said to be another reason for the initial debacle of super apps in India, as there are already established players for each niche service in India, who have burnt their cash to acquire significant market share. While Uber and Ola dominate the ride-sharing market, Google Pay and PhonePe lead in UPI payments. Likewise, Amazon and Flipkart have taken the lead in quick commerce.
For app developers, a super app is an application integrated with the capabilities of platforms and ecosystems that allows third-parties to develop and publish mini apps.
WeChat, which started as a messaging app and kept on integrating diverse services into the app, is the best success story among all super apps.
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