The rise of super apps has taken the world by storm, transforming the way we interact with technology and revolutionizing the app startup ideas landscape. In this article, we'll delve into the history, economics, and business strategy behind these innovative platforms.

The Mass Market Strategy

In today's digital age, each user is considered a mass market, demanding various products and services. To thrive in this environment, companies must provide multiple services to cater to their diverse needs. This mass market strategy leverages vast amounts of data collected from customers to offer personalized recommendations, up-selling, and cross-selling opportunities.

Digital Evolution in Emerging Economies

In developed economies, the emergence of smartphones followed the internet's widespread adoption. By contrast, emerging markets faced unique challenges, such as low internet penetration and limited computer usage. The smartphone, with its good internet connection, empowered users to access computing and the internet, exposing them to businesses that previously couldn't reach these customers.

Low Margins for Services in Emerging Markets

India's GDP per capita is approximately US$2,000 (nominal terms), compared to US$60,000 in the US. This disparity makes it challenging for businesses to onboard new customers and charge money upfront, as users are not accustomed to using services. To survive, apps must offer multiple services that gradually build an ecosystem around themselves, increasing their "stickiness" in the mass market.

Success Stories from the East

WeChat, a Chinese super app, started as a messaging platform and later introduced social media and payments. It supports video, voice, and text chat, with unique features like localized translation. Key statistics include:

  • Tencent's social network revenue reached $17.4 billion in 2021, accounting for 19% of the company's total revenue.
  • WeChat had 1.26 billion active users as of Q1 2022.
  • The platform supports over 3.5 million mini-programs, with transactions totaling 2.7 trillion RMB in 2021.
  • Daily messages sent on WeChat reached 45 billion in January 2019.

Another example is GoTo, an Indonesian super app formed by the merger of GoJek and Tokopedia. Key statistics include:

  • The current valuation of GoTo is around $18 billion.
  • The super-app contributes to 2% of Indonesia's GDP (approximately $1 trillion USD economy).
  • GoTo has around 100 million monthly active users.
  • Over 11 million merchants are onboarded on the platform.
  • The app boasts over 2 million drivers.

Super-Apps from Around the World

Other notable super-apps include:

  • WeChat, China
  • AliPay, China
  • Paytm, India
  • Grab, Singapore
  • GoTo, Indonesia
  • Zalo, Vietnam
  • KakaoTalk, South Korea
  • Careem, Dubai
  • Momo E-Wallet, Vietnam

The Super App Model for the West

Western companies already had successful businesses solving user problems before the advent of smartphones. Companies like Uber, Google, Facebook, and Twitter provided niche services to their respective segments. Given these existing players, the super app model in the west looks different.

Additionally, strict laws for data protection, such as GDPR in Europe, limit the power any single company can hold over users' data. Tech giants in the US are adapting by offering services in various ways:

  • Apple focuses on its hardware as the primary product, providing additional services through built-in apps like Apple TV, Apple Pay, and Apple Music.
  • Google leverages its Android operating system to provide a range of services.

In conclusion, super apps have revolutionized the app startup ideas landscape. By understanding the history, economics, and business strategy behind these platforms, entrepreneurs can create innovative solutions that cater to diverse user needs.