Predicting the Outlook of Super Apps

Super-apps have become extremely popular in Asia and Africa, where they have gained a significant following due to their early integration of multiple services, including ride-hailing, messaging, and digital wallets.

The mobile landscape may undergo permanent transformation due to the emergence of super-apps, which bring together multiple services into a single platform.

The idea of a "super-app" that integrates various functions from different industries has already become a reality for many individuals globally. Apps such as WeChat and Paytm allow users to effortlessly switch between social media, banking, online shopping, transportation, and more within the same user-friendly interface. The usage of these apps is made even more convenient through the integration of shared account information and loyalty rewards. Additionally, super-apps typically have an in-house payment platform or a partnership with a bank, allowing users to only enter their payment information once, making transactions much smoother.

Super-apps enhance the customer experience by enabling the sharing of data among services and with outside developers. This creates a seamless experience where, for instance, the app's banking service can grant a loan based on purchasing information from the digital marketplace within the app. Furthermore, a hotel booking service within the super app might provide a special offer in response to a flight reservation made elsewhere within the app. This integration draws more third-party participants to the platform, thereby boosting the data quality and quantity available.

Super-apps are currently experiencing significant popularity in Asia and Africa due to their early integration of multiple services such as ride-hailing, messaging, and digital wallets. However, in the West, mobile services are typically offered through separate apps. As a result, the development of Western super-apps may occur through the merger or partnership of various platforms including fintech, transportation, food delivery, and other services. The growth of super-apps in the United States, Europe, and Australia may be hindered by strict data governance and antitrust regulations.

Successful implementation of super-app strategies is most likely to be achieved by established technology companies and platforms. Although Asian super-apps were pioneers in offering services such as peer-to-peer payments, social media, and mobile ticketing, the majority of these industries have established players in the US. These companies possess three key advantages that give them an edge: access to the technical resources necessary to integrate super-apps, the financial capability to engage in mergers and acquisitions if needed, and a large user base that they can leverage to introduce new services.

The cornerstone of Western super-apps could be the provision of insights and guidance. In certain developing markets, super-apps are becoming popular as they consume less storage space and data compared to having multiple individual apps. The key selling point for Western consumers would likely be the simplified user experience - the ability to handle fewer accounts, complete transactions more quickly and save money through loyalty programs and rewards.

It is probable that Western super-apps will focus on being transparent in their handling of customer data collection and utilization. With the vast amount of data at their disposal, Western super-apps are likely to face regulatory oversight. However, the implementation of strict regulations to protect different types of data may hinder the super-app's ability to generate insightful recommendations through internal data sharing. This could result in a poor user experience due to lengthy permission requests for each new feature. To address these challenges, super-app developers may need to collaborate closely with regulatory bodies.

The B2B market presents a more favorable environment for the development of super-apps. With fewer existing apps in the B2B sphere, it offers a greater opportunity for growth. Furthermore, the requirements of business leaders in this sector tend to be different from those in B2C, as they are likely to prefer a combination of desktop and mobile access. As a result, B2B super-apps can concentrate on delivering value through the provision of data insights, automated guidance, and a streamlined integration of various business platforms into a unified workspace.