Are Super Apps really doing super?
“The most valuable real estate in the world is not in Hong Kong, Manhattan, Knightsbridge or Monaco. It’s in your pocket.” Tim Bradshaw states in his article in the FT Magazine.
This is exactly why technology companies are in a fierce race to gain a place on users’ devices. Having battled so hard to gain a few megabytes of space on users’ devices, companies are turning their strategy into creating super apps in order to maximize the profit from their achievement.
Let’s look at some statistics that demonstrate the value of space on user’s devices:
> Today, there are 8.93 million mobile apps worldwide, with 3.553 million apps in the Google Play Store and 1.642 million in the Apple App Store.
> In 2022, the total mobile app spend surpassed $500 billion according to Data.ai’s annual mobile report.
> Average Apps per User: Mobile users have 40 apps installed on their mobile devices.
> App Revenue: Mobile apps are expected to generate more than $613 billion in annual revenue by 2025.
> App Usage: Mobile users access 9 to 10 apps daily and 30 every month.
The Concept and Evolution of Super Apps
A super app is a multifunctional mobile application that offers a diverse range of services and features within a single platform. This concept emerged as a response to the growing demand for convenience and efficiency, aiming to streamline various aspects of users’ lives. The evolution of super apps can be traced back to companies like WeChat in China, which initially started as a messaging app but rapidly expanded to incorporate services like payments, social networking, ride-hailing, and more. China’s app regulations and restrictions have indeed played a significant role in shaping WeChat’s transformation into a super app. The Chinese government has implemented various regulations and restrictions on the internet and technology sectors to ensure data security, prevent monopolies, and maintain control over online activities.
This pioneering move paved the way for other super apps such as Uber, Bolt, Grab, and even Spotify (when its podcast move is considered), as well as Getir, Yemeksepeti (Delivery Hero), and Martı are common examples from my hometown, Turkey. The central idea behind super apps is to create a comprehensive ecosystem where users can access an array of services without the need to switch between multiple applications. The purpose of super apps is to enhance user convenience, increase engagement, and ultimately establish a dominant position within the app market.
Looking at the other side of the business; technology companies can target a wider audience for digital marketing of their super apps. This way, they aim to increase their profitability per user by offering more products to users with the same marketing budget. From this perspective, super apps are the product of a very reasonable mindset that makes it much easier for companies in terms of budgeting, market positioning, and governance. But does it make just as much sense when it comes to the technical and architectural aspects?
Why Super Apps Are Not That Super?
Despite their convenience, super apps do have some inherent weaknesses when compared to single-purpose apps. One significant drawback is that super apps might become overwhelming due to the sheer number of features they encompass. This can lead to a complex user interface that might confuse or frustrate users looking for a specific function.
Recently, I noticed that Uber has announced a new feature called “Uber Travel,” where you can organize all your travel itinerary, such as flights, hotels, restaurants, etc. Imagine that you’re in a rush to take a cab. You open your Uber app, and it asks you if you’d like to organize your next vacation. Then you skip that page, and it confuses you by asking which meal you would like to order. Finally, you find the correct button to book a ride. But you have already spent a few minutes figuring out where that feature you’ve been looking for is. From the times that I was working as a digital product owner, I remember that we always used to be proud of how fast users were completing transactions in our app.
Just like in the case of Uber, the performance of certain features within a super app can lag behind special-purpose apps designed to excel in their specific fields. Feature performance and user behavior may vary from region to region. Moreover, updates and changes to a super app’s user experience could impact various services, potentially causing disruptions across the platform. Security concerns also arise as a breach in one service of a super app could potentially compromise all the dependent services within the platform.
Resurgence of Single-Purpose Apps
Single-purpose applications can compete successfully with super apps due to various reasons. First and foremost, they offer a focused and optimized user experience within their specific niche. This specialization allows them to excel in their core functionalities, providing users with reliable and efficient solutions. They usually take less space on the device as well as being comparatively faster, more responsive, and easier to navigate than super apps. Users who prioritize particular services, such as food delivery or navigation, might find single-purpose apps more straightforward and easier to use. As standalone applications, these apps might also receive more frequent and tailored updates, adapting swiftly to changing user needs and preferences. This flexibility and user-centered approach contribute to the ongoing competitiveness of single-purpose apps in the app market.
A survey by Deloitte revealed that enhancing the loading speed of a mobile e-commerce app screen by just 100 milliseconds can result in a conversion boost of up to 8%, with an accompanying 10% increase in customer spending.
When it comes to user experience; I still think it is the most important element of a successful app. Single-purpose apps are created to serve the thing that they do best. Is it the payment? Let users pay with the lowest failure rate. Is it streaming? Give them the best resolution in the fastest way possible. Is it food delivery? Give them a chance to easily find what they are craving from a generous food selection.
All in all, the super app trend seems to be making it easier for companies rather than users. Tech companies that are trying to make more profit from the space they have on devices are ignoring the fact that, over time, they are increasing the complexity of their apps and complicating the user experience. As applications continue to expand their footprint in this way, significant maintenance costs can occur. And users, who are becoming more and more impatient in the digital world, may choose speed and straightforwardness over complexity.
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