Unlocking the success of super apps: Success in Asia, challenges worldwide
Elon Musk rebranded Twitter to X aiming to turn it into an ‘everything app’. It reminded me of my discussion with a client last year: Will superapps reach the same level of prominence in other parts of the world as Asia?
When in Bali, I observed the prevalent use of Grab & Gojek, similar to how WeChat integrated into the daily life of people in China or Line in Japan. Using a mobile app for multiple services isn't a common behaviour we see outside Asia.
Many factors contribute to the success of super apps in Asia and the lack of adoption in other markets. Here are a few:
🏷️ Market fragmentation: Asia had a larger gap in the availability and accessibility of digital services. Super apps bridge the gap, offering many services on one platform. The West has a more competitive digital ecosystem with established players in various sectors, making it harder for super apps to break through.
📱 Mobile penetration: Smartphones were the key means of Internet access in China and Southeast Asia. Grab & WeChat mobile-first platforms were accessible to a sizeable number of users. Launched in 2011 just as smartphone sales in China exploded, it allowed WeChat to establish itself early on to gain a huge user base.
📳 Mobile payment adoption: Quicker & more extensive mobile payment solutions adoption in Asia made it easier for super apps to integrate financial services seamlessly.
✅ Cultural norms: Group communication is a key part of daily life in China. WeChat leveraged this norm, integrating messaging & social features to make it a natural extension of users' existing habits. In SE Asian cities, ride-hailing services were in high demand due to issues with public transportation & traffic congestion. It made Grab quickly become a popular option for daily commuting.
🔐 Privacy: Super apps require users to share a significant amount of personal data to access various services within the app. Western users have higher concerns about data privacy and security and, therefore, are wary of embracing super apps.
📍 Localised approach: WeChat & Grab's understanding of the cultural differences allowed them to localise their design, services & operations, catering to local users' needs. It helped to gain users' trust & acceptance. Uber didn't do this well when it was in this region.
🧡 User loyalty: Asian users are more willing to try new tech & switch between platforms as they've lower brand loyalty.
🤝 Partnerships: WeChat & Grab formed strategic partnerships with various companies, integrating existing services into their platforms to provide a broader range of offerings. It allowed users to rely on the super apps for multiple daily needs.
📜 Regulatory environment: Strict regulations in the West pose challenges to the expansion of super apps. Although regulations are more accommodating in Asian countries, Grab still worked with local governments to navigate regulatory challenges in different countries.
💥💥💥 Simply copying and pasting a solution or technology from one market or region to another without considering these differences is a risky strategy that can lead to significant challenges and setbacks.
The concept of super apps exists in Western markets but the scale & adoption rates are not widespread. As the digital landscape evolves & user preferences change, super apps might gain more traction & acceptance outside Asia. It might take a longer time to get there though. Can Musk/X make it happen?