All-in-one apps that dominate China and other Asian markets may soon materialise in the United States, albeit with significant variations
No super app has emerged in the United States to date, although American Big Tech firms appear poised to change that.
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When Elon Musk announced the appointment of Twitter’s new chief executive, he also reminded the world of his ambition for the platform: “Looking forward to working with Linda [Yaccarino] to transform this platform into X, the everything app.”
But for once, the entrepreneur who popularised electric cars and pioneered private space exploration is behind the curve. Apps that serve as one-stop shops for a multitude of services – from online messaging, grocery and food shopping, e-payments, ride-hailing and entertainment to travel bookings – are already widely used in China and Southeast Asia. WeChat, the king of the so-called super apps, has more than 1.3 billion monthly active users.
No super app has emerged in the United States to date, although American Big Tech firms appear poised to change that. A few examples: Facebook’s main app now includes payments, e-commerce, gaming, dating and podcasts; Amazon’s platform offers medical consultations, pharmacy services, grocery delivery and content streaming; Uber now peddles not just ride-hailing but also travel bookings as well as food and package deliveries.
They may well succeed – though perhaps not on the scale of their Asian rivals. As Dan Prud’homme, Tony W. Tong and I explain in an article for Harvard Business Review, deep-rooted legacy, regulatory and culture reasons mean super apps will likely remain a pipe dream in the US, but the convergence of a number of conditions including demographics could usher in an age of “super apps lite”.
Any prediction of the future would benefit from an examination of history, so let’s first consider the factors that have impeded the emergence of super apps in the US. They include historically divergent growth trajectories, a tighter regulatory environment and cultural differences.
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]