Super App Model
Studies show Americans use an average of 46 mobile apps each month. These apps help with many everyday tasks. Now, imagine combining all of them into one app. A one-stop shop where you can socialize, order food, pay rent, or even see a doctor. This is called a super app model.
A super app is a mobile app with many different services and a common payment platform. The best example is WeChat from Tencent. It started in 2011 as a simple messaging app. Over time, it added payments, games, shopping, and even doctor bookings.
Uber is also exploring creating a super app model. CEO Dara Khosrowshahi wants to combine multiple services, similar to WeChat. Super apps let you do many things within one app. They include social media, messaging, ride-hailing, shopping, dating, and more.
Super apps have succeeded in Asia but are less common in the US. However, more tech companies are trying to bring the super app model to the US. Elon Musk recently re-branded Twitter to X. This is part of his goal to create an all-in-one app for messaging, social media, and payments.
Most super apps are from Asia, especially China. WeChat (owned by Tencent) is the original super app. Alipay, by Alibaba’s Ant Financial, is another major one. Together, these apps have over 2 billion users. WeChat started as a messaging app but later added many other services.
WeChat reached 1.3 billion monthly users. Users had little reason to leave the app. It became its ecosystem. WeChat has over a million mini-programs in its “walled garden.”
Other super apps have gained popularity in Asia. In South Korea, Kakao is used by over 90% of smartphone users. Japan’s Line, Grab in Southeast Asia, and Paytm in India are also popular. People are tired of having many apps on their phones. Super apps combine all those functions into one app.
Professor Dan Prud’homme explains that frequent app use helps companies collect data on users. This allows them to offer better services and target ads. These Super apps benefit consumers, service providers, and advertisers.
In Silicon Valley, WeChat is seen as the gold standard. Tech companies want to create a super app for the US. There are already some super apps in the US, though not as big as WeChat. Elon Musk has talked about turning X (formerly Twitter) into a super app. WhatsApp is testing payments in India, and Facebook Messenger added Meta’s AI assistant.
In Asia, consumers are more willing to adopt super apps. They are also more open to innovation. Many Asian markets skipped desktop apps and went straight to mobile. This made it easier to adopt mobile apps like super apps. There’s less resistance to relying on a few companies for most daily needs. Another key element is digital wallets. These apps use digital wallets instead of credit card systems, which makes transactions cheaper and easier. This encouraged super app model growth in Asia.
Amazon has a marketplace, streaming, music, pharmacy, and doctor bookings. Facebook has social media, messaging, marketplace, and gaming. Uber has ride-hailing, Uber Eats, grocery, and parcel delivery. Uber is also exploring buying Expedia, aiming to be a travel super app.
These are examples of apps becoming more “super.” But there are challenges in the US, mainly in regulatory concerns. Antitrust laws and data privacy protections make it harder for super apps to thrive in the US as they do in Asia.
A major challenge for US companies is the competition in the marketplace. The US market is fragmented with many players and competitors. For example, in China, WeChat is the dominant messaging app used every day. In the US, there are multiple messaging apps like WhatsApp, Apple iMessage, Signal, and Telegram.
Another obstacle is the user behavior. People often have strong preferences for certain brands or apps. For example, if someone is booking a flight, they might choose a specific provider. The challenge for US super apps is convincing users to use all services within one app, whether Meta, Uber, or Apple own it.
We might see a super app model in the US, but it won’t be like WeChat. It will likely be a “super app light” with fewer features. Companies will gradually add more services, but a full WeChat-style super app seems unlikely shortly. The US market’s fragmentation, user behavior, and regulations make it difficult for a US company to create something like WeChat.
In specific categories, like food delivery or taxis, there are several competitors. They often don’t want to share data or customers. In China, protectionism allowed WeChat to grow without competition from Facebook, Twitter, or Google.
However, we are already seeing “super-ish” apps in the US. Amazon, Facebook, and Uber each offer a variety of services that cover many daily needs. Uber is building its super app model and aims to be a local one-stop shop for everything people need.
The super app started in China and spread across Asia, but aspects of it can be replicated in other regions. It will take time and changes in user behavior. US consumers are willing to adopt super-ish apps because they like the convenience and want to avoid downloading too many apps. There’s potential for super apps to succeed in the US, but it’s a longer journey.
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