Super Apps: Global Trends and Insights

Super apps have taken the world by storm, offering a wide range of services under one umbrella. In Southeast Asia, super apps like Grab and Go-Van have become essential tools for daily life, with over 50% of users relying on them for transportation, food delivery, and mobile payments.

In China, super apps like WeChat and Alipay have become the backbone of the digital economy, with over 1 billion users combined. These apps have disrupted traditional industries and created new business models that are changing the way we live and work.

The concept of super apps originated in Southeast Asia, where the lack of formal addresses and credit infrastructure made it difficult for traditional apps to succeed. This led to the creation of all-in-one apps that could provide a range of services to users.

Super apps are not just limited to Asia; they are gaining popularity globally, with companies like Uber and Amazon experimenting with new services and features to become more like super apps.

A super app is essentially a multi-service app that offers a wide range of services under one umbrella.

These services can be thought of as single-purpose applications that are bundled together.

Super apps allow users to access multiple services from a single platform, making it a convenient option for those who want to benefit from multiple services in one place.

Each feature in a super app can be added or removed at the user's convenience, giving them flexibility and control over their experience.

To create a successful super app, you need to focus on a smooth and seamless experience for your users. This means consolidating everything they need into one place, eliminating the need to jump between different apps.

A key feature of a super app is its payment system, which should include mobile payments, cashless transactions, investment tools, and QR code payments. This is a crucial aspect, as seen in popular super apps like WeChat and Momo, which have partnered with financial institutions to offer users basic banking services and savings options.

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User experience is further enhanced by integrating social media and Google login options, allowing users to sign up or log in easily through their Google or social media accounts. This is a feature that can help reach a broader audience, especially if you aim to expand the app across different regions.

A streamlined user experience is key to making your super app a go-to destination for users. About 28% of US consumers feel overwhelmed by the number of devices and accounts they must manage, according to Deloitte.

To avoid this hassle, super apps in e-commerce replace multiple logins with a single sign-on, making it easier for users to remember just one password. This convenience keeps users coming back to the app.

Super apps like WeChat and Momo have partnered with financial institutions to offer users basic banking services and savings options, making it even more convenient for users to manage their finances within the app.

E-commerce super apps are incredibly versatile, catering to a wide range of customer segments. This is made possible by offering a broad range of services, from financial transactions and transportation to social networking and shopping.

One of the standout qualities of e-commerce super apps is their ability to appeal to diverse demographics and preferences within a single platform. By consolidating various services, super apps can provide a personalized experience across different age groups, preferences, and needs.

Superapps for retail businesses maximize engagement and loyalty across different age groups, preferences, and needs, ultimately building a loyal, varied customer base. This is a key benefit of e-commerce super apps, allowing businesses to tap into a broader audience.

E-commerce super apps can provide a unified loyalty and discount program that benefits users and app providers, making it easy for customers to enjoy rewards and perks across various services. This level of convenience and personalization is a major draw for users.

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WeChat, a customer-facing superapp from China, is a great example of how these apps can be used. It has over 1.2 billion monthly active users and generated $240 billion in transactions through microapps in 2020.

Superapps are now found in many countries, including India, Japan, and South Korea. Paytm and TataNeu are popular superapps in India, while LINE is used in Japan and South Korea.

The US is slow to adopt the customer-facing superapp model due to app store regulations, but employee-facing superapps are being adopted as a way to give employees a comprehensive experience.

Emerging markets have become a hub for super apps, with countries like India, Southeast Asia, and Latin America leading the way. In India, Paytm has 330 million users, offering integrated recharge, ticketing, life insurance, and other services.

One of the key drivers of super app success in emerging markets is the high percentage of unbanked populations. For example, in some regions, up to 70% of the population doesn't have access to a bank account. Super apps like Yalla, with 30 million users in Egypt and the UAE, provide e-wallet and online payment features to cater to these user groups.

Mobile internet and smartphones have also played a crucial role in the growth of super apps. In Asia Pacific, 97% of the population has mobile phone coverage, up 55% from 2016. This has led to a preference for easy-to-use super apps that integrate multiple services over installing multiple apps.

Here are some examples of super apps in emerging markets:

Regulators have also been supportive of super app growth, as seen in Indonesia where the government partnered with companies like Gojek to develop smart cities.

Hyper Localization is a key strategy for super apps to expand into new markets. They can appeal to a wide range of users globally by adapting to different areas' unique cultures, languages, and preferences.

Super apps made notable progress in specific regions, such as retail businesses. This approach helps them enter new markets and compete with local competitors.

By aligning themselves to fit different areas' needs, super apps can accelerate expansion into new markets. They will focus on expanding internationally to become global platforms operating across borders.

WeChat is a super-app that has become an integral part of daily life in China, with over 1.3 billion active users worldwide every month. It offers a wide range of functionalities, including messaging, social media, payments, and business services.

WeChat's success can be attributed to its ability to integrate various services into a single app, making it a one-stop-shop for users. This is evident in its social feed, payment services, and mini-programs that act as in-app apps for shopping or services.

WeChat's popularity has led to its adoption in most stores and by street vendors in China, where it is used for peer-to-peer transfers. This has made it an indispensable tool for many users, with a quarter of WeChat users in China spending over four hours on the app on a daily basis.

Here are some key features of WeChat:

Rubika is an interesting example of a superapp, especially when considering the context of Iranian applications. It's funded by the Iranian regime and has millions of users.

Developing a superapp like Rubika requires a deep understanding of the local market and user needs. This is evident in the fact that it has millions of users.

Iranian applications like Rubika are referred to as superapps rather than startups, which suggests a different approach to development and growth.

Developing a super app requires a solid strategy and resources. You need to know the right approach to tackle the complexity of building a super app.

Start with a Strong Core Product, as Momo did with their e-wallet service. This single, killer feature should resonate with users and provide a solid foundation for the app.

Building a strong core product takes time and effort, but it's essential to nail that core function first. Think big, but start small and focus on delivering a high-quality experience that users will appreciate.

In developed markets, super apps are gaining traction, but at a slower pace than in emerging markets.

Super apps have been in demand in the US, where 70% of adults currently order takeaway online, and 67% of customers want a single platform that unifies all of their everyday activities.

The Australian government has passed open data legislation under CDR, which allows for limited data exchange between firms with customer consent in terms of privacy and regulation. This law is already in effect in the banking industry and will soon be implemented in other industries like energy, telecom, and insurance.

Examples of super apps exploration in developed markets include Facebook expanding into dating and recruiting markets, and Uber offering medicine delivery and travel services in addition to food delivery.

Klana, a Swedish company, offers users a 'buy now pay later' service with extra features like shopping and budget management, spanning both Europe and the US, and covering 150 million users across 16 countries.

Super apps are a rapidly evolving strategy that have already been validated in emerging markets, and are continuing to grow in developed markets.

Super apps in e-commerce can significantly lower business user acquisition and retention costs.

By housing multiple services within a single platform, you can eliminate the need for customers to switch to alternative applications, which can reduce costs associated with re-engaging users across separate apps.

This model offers a cost-effective approach to retaining a more extensive customer base, as users tend to remain within the app ecosystem for various services.

Cutting down on marketing expenses needed to reacquire users is a significant benefit of super apps for retail businesses.

Consolidating resources and reducing the need to maintain multiple apps or interfaces saves money, making super apps a budget-friendly option.

Developing a super app will be more complicated than a simple one.

To face this challenge, you must know the right strategy and resources. You could keep the following things in mind.

Developing a super app requires a lot of planning and execution. It's a complex task that demands a deep understanding of your target audience and their needs.

You must have a clear vision of what you want to achieve with your super app. This will help you stay focused on your goals and make better decisions throughout the development process.

A super app is essentially a mobile app that offers a wide range of services and features. It's like a one-stop-shop for users, providing them with everything they need in one convenient place.

To create a successful super app, you need to have the right resources and expertise. This includes having a skilled development team, a solid infrastructure, and a robust business strategy.

Developing a super app will be more complicated than a simple one.

Selecting the right platform is a super important decision because it's all about how you'll reach and engage with your target audience.

You have three main options: Native Apps, Cross-Platform Apps, and Web Apps.

Native Apps are built specifically for one platform, such as Android, iOS, or even Windows. If you're focusing on a specific group of users primarily using one type of device, this is your best bet.

Cross-Platform Apps, also known as Hybrid Apps, use the same codebase to develop for multiple platforms and can be uploaded to app stores for each one. This option is great if you're looking to reach a broader audience without the headache of developing separate apps for each platform.

Web Apps are mobile-optimized websites that feel like apps but run directly in a browser. They can be a good option if you're after something more lightweight, but their performance and user experience generally aren't as slick as native or cross-platform apps.

A good example of a Native App is Uber, which started by solving a core transportation problem and then expanded into other services like food delivery and grocery shopping.

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Building an ecosystem is crucial for a super app's success. This involves creating partnerships and building a business ecosystem around your app to offer a wide range of services.

To build a strong ecosystem, it's essential to collaborate with third-party companies that can bring valuable services to your platform. As mentioned in Example 8, "4) Collaborate and Build an Ecosystem", no one brand can be everything to everyone, so it's vital to look for opportunities to work with other companies that can complement your offerings.

In fact, Uber, GoJek, and Grab started by solving a core transportation problem and then expanded into other services like food delivery, grocery shopping, and financial services (Example 7). This approach allowed them to build a robust supply-side economy and scale their operations.

By creating a network of complementary products and services, you can build something more significant than an app – a whole lifestyle ecosystem. This is exactly what WeChat did in China, offering users a wide range of services from chatting with friends to booking doctor appointments (Example 3).

Here are some key characteristics of a successful super app ecosystem:

By focusing on building a strong ecosystem, you can create a super app that meets the needs of your users and sets you apart from the competition.

Imagine starting a fintech business with a great product and motivated team, but struggling to compete in the global market. AI can help small fintech businesses like yours compete in the global fintech landscape.

AI can help fintech SMEs automate routine tasks, freeing up resources to focus on innovation and growth. A young fintech business owner can use AI to make waves in a sea of industry giants.

AI-powered tools can analyze market trends and customer behavior, providing valuable insights to inform business decisions. By leveraging these insights, you can create products and services that meet the evolving needs of your customers.

AI can also help fintech SMEs improve customer experience, increase efficiency, and reduce costs. With AI on your side, you can stay ahead of the competition and achieve your business goals.

Criticism of super-apps is growing, particularly in regions like the US and Europe, where regulators are concerned about the overall power of the technology industry.

Internet regulators in these areas are increasingly critical of companies developing super-apps, which can offer users a wide range of services but also pose significant risks.

The peaking of smartphone penetration rates in many regions has led to overcrowded app stores and tighter restrictions on targeted advertising, making it difficult for companies to replicate WeChat's super-app model.

Single-purpose apps are generally faster, more responsive, and easier to navigate than super-apps, which can improve the overall user experience.

Super-apps often store large amounts of personal data, making users more vulnerable to severe data breaches, such as the 2020 incident where Tokopedia's data was stolen and shared by hackers, affecting 91 million users.

Losing access to a super-app account or being banned from it can have serious consequences, as users may also lose access to multiple real-life services and digital applications.

Employee-facing apps are becoming increasingly popular among enterprises, and it's easy to see why. They can provide a tailored experience for each employee depending on their role and team.

Internal-facing superapps have become common, with enterprises wanting to engage with employees more effectively. Me@Walmart is a prime example of a business-to-employee (B2E) superapp platform.

Employees can get onboarded, check their schedule, request time off, access their benefits, and more on these platforms. Larger distributed teams in enterprises like Walmart can greatly benefit from these tailored experiences.

B2E superapps can be the all-in-one solution for communicating, educating, and maintaining relationships with employees.

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Ionic Portals breaks up the frontend of a native app into micro frontends, then integrates web experiences into the native app. This setup allows users to still get a seamless native and microapp experience.

Native mobile superapps can be developed using Ionic Portals, which makes it possible to embed microapps into them. This is a game-changer for enterprises looking to streamline and customize user experience.

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Cross-platform app development is the most flexible and assured way to meet customers on any device, and Ionic Portals can be used in conjunction with this approach. It saves development time and cost by creating one codebase for both iOS and Android devices.

With Ionic Portals, you can use your existing web developer talent to get the work done, making it an attractive option for companies already invested in web development.

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