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App Development, Mobile App Trends

Are Super Apps Destined for the US Market?

August 1, 2023 Kelly Kelleher Comments Off on Are Super Apps Destined for the US Market?

The future is taking hold in several different ways and at varied speeds worldwide. Distinctive regional factors, such as assets, governance, and consumer preferences, have given rise to unique approaches to new technologies—ultimately leading to unexpected innovations. Super Apps are apps that have been drawing huge followings by offering a multitude of services in a single platform. They have emerged as a prime example of such innovation in Asia.

What Are Super Apps?

Super Apps serve as operating system-like platforms on mobile devices. They drive daily engagement across a far-reaching demographic by delivering a range of capabilities within a lone app, from payments to e-commerce to ridesharing and social media. By amassing a large, engaged user base centered around a core functionality, super apps gain tremendous influence and leverage in their markets.

For example, many first focused on building scale in one key area like payments or messaging. Once they achieved an abundance of users, they were able to expand into additional services and features. They could add these incremental product offerings without spending as much on marketing and user acquisition since they already had an established user base to market to. Their expansive collection of integrated services helps Super Apps retain users within their ecosystems.

Rather than having to download and switch between distinct apps for each individual need, users can access all the services they need without ever leaving the super app. This consolidated experience enhances convenience and saves time compared to managing separate apps for each task. A variation on the super app model that has emerged recently is theme-based Super Apps.

What are Theme-Based Super Apps?

Rather than offering a wide generalized set of services, theme-based Super Apps center their ecosystem around a particular niche, industry vertical, or user segment. For example, some education super apps could integrate features like virtual tutoring, class enrollment, fee payment, and learning resources into one platform tailored for students and teachers. Similarly, some financial super apps consolidate various money management features ranging from payments to investing to lending.

Theme-based apps allow for even greater specialization and customization to a target demographic compared to horizontal super apps. Their depth in a specific domain enables themed Super Apps to better cater to the distinct needs of their niche users. While they sacrifice breadth of services, theme-based gain advantages by becoming a one-stop shop for their target vertical. Their expertise and comprehensive offerings in one area can help them win market share over-generalized Super Apps.

Why Asia Loves Super Apps

Super Apps have become deeply embedded in digital life across many Asian countries while gaining far less traction in the US. This divergence stems from a few key factors:

The lack of established tech ecosystems. Many consumers leapfrogged from minimal internet access straight to smartphones. Super Apps capitalized on this by providing a range of services in one place. On the other hand, US tech habits were entrenched by the time mobile matured, with users accustomed to specialized apps for each need.

Asia’s high population density. With large urban concentrations, Super Apps can reach millions rapidly. In lower-density US, network effects are harder to achieve.

Cultural differences. Asian consumers have shown greater openness to digital lifestyles organized through a single ecosystem. Preferences in the US lean closer to choice, customization, and specific apps for specific functions.

Regulatory environments. Governments in Asia have been more permissive toward services like digital payments integrating into Super Apps, versus the US.

The rise of Super Apps like WeChat (serving over 1.2 billion global users) and Gojek (serving about 170 million users throughout Southeast Asia) can be somewhat attributed to the prevalence of lower-end smartphones in the region during the early days of the mobile app revolution. Many Asian consumers own smartphones with limited processing power, storage space, and battery life compared to high-end models. This makes having dozens of individual apps downloaded unsustainable—the phones simply can’t handle it!

A single Super App is far less taxing on their hardware than having installed 40-50 separate apps. The super app model proves incredibly convenient and practical for users of underpowered budget smartphones. As super apps took off in Asia, they drew users away from standalone apps. The rise illustrates how hardware limitations can shape software usage and app development in unexpected ways.

What Are Some of the Reasons the US Doesn’t Have Super Apps?

There are several reasons why the United States does not have Super Apps like those found in other countries. US consumers tend to prefer specialized apps that focus on doing one thing very well, rather than a Swiss army knife super app approach. There are already numerous established apps and platforms that cater to specific needs. These include social media (Facebook, Instagram), ride-sharing (Uber, Lyft), and food delivery (Grubhub, Door Dash).

There is also a greater focus on data privacy and antitrust regulations in the US. It restricts the amount of data sharing and market consolidation needed for a Super Apps to thrive. Attempts like Facebook’s integration with Messenger and WhatsApp have seen limited success. Underlying all of this is some level of distrust of large tech monopolies. So, while they have thrived in Asia, US tech culture and regulations have ultimately stifled their growth.

The Super App phenomenon highlights how pre-existing user habits in developed markets curb the adoption of revolutionary innovations that flourished in Asia’s relatively “blank slate” consumer tech environment.

Is the US Ready to Embrace Them?

Developed Western markets like the United States face deeply ingrained consumer biases and habits that make adopting radical new technologies like Super Apps an uphill battle. When super apps emerged in Asia, there were no major pre-existing habits to overcome, allowing quick acceptance.

But in the US, changing established behaviors and gaining wide uptake of innovations have moved slowly. The average American has approximately 80 apps installed on their smartphone, with them opening over 40 apps per month. The monthly apps are generally a mix of social media, messaging, entertainment, shopping, gaming, and banking. A study by Chase Bank found that 87 percent of U.S. adults use a mobile banking app at least once a month. This indicates that mobile banking apps have become mainstream and are used by almost 9 in 10 adults.

Consumers spread their time and activities across many specialized apps. This shows they are comfortable managing multiple app relationships rather than consolidating into a one-stop app. There may also be reluctance around sharing confidential information (i.e. banking and financial information) in a Super App amongst security-conscious Americans. This fragmentation suggests that most mainstream American consumers do not yet have strong demand for an all-in-one app.

Super Apps can revolutionize several industries in the US by providing users with a seamless and unified experience across multiple interaction points. Although workplace Super Apps have already gained popularity, there are still opportunities in sectors such as banking, financial services, healthcare, government services, and conglomerates with retail arms. Industries that have numerous interactions with customers are perfect for integration. For example, a banking Super App could simplify banking, payment, and investment services. Similarly, a healthcare super app could combine medical records, scheduling appointments, and telemedicine consultations. Companies with a retail presence could offer a unified shopping experience that includes e-commerce, loyalty programs, and personalized recommendations. The potential for super apps to expand into other industries, including transportation, entertainment, and education, is promising. This could revolutionize how Americans engage with digital services, providing greater convenience and efficiency.

Unlock Your Mobile Potential: Let Bryj Power Your Business App Needs

The future of Super Apps offers an intriguing solution for businesses struggling with poorly performing mobile apps or lacking enterprise-level capabilities. Super apps promise a centralized platform integrating AI, payments, messaging, and more to provide a seamless user experience.

As the only end-to-end, AI-powered app builder with fully integrated global payments, Bryj enables businesses to quickly build cutting-edge, customized mobile apps delivering exceptional user experiences. By leveraging our comprehensive features including AI-driven insights and global payment options, you can future-proof your business’s mobile presence with an app built for your needs.

Super Apps’ promise to enhance customer engagement while consolidating complex back-end functionality is compelling. While the US market has been skeptical, our capabilities make us the ideal app partner for businesses seeking to thrive in the mobile age. By leapfrogging specialized apps with our all-in-one solution, you can finally realize the full potential of mobile apps.

Contact Bryj to learn more about getting an app and unlock your mobile potential!

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