We don’t need “super-apps” – just apps that are super

In an internal meeting in October 2023, Elon Musk announced to the team at X that a big change is ahead.  He said that Twitter, now X, was heading towards being an “everything app. An all-inclusive feature set that you can basically do anything you want on our system.”  

What Musk was describing is often referred to as a super-app – an app that combines a multitude of services like messaging, social media, ecommerce, payments, etc. – and some predict that super-apps are the future. Their widespread adoption in several parts of the world has some proclaiming that these apps are poised to dominate the digital landscape and edge out any less robust, comprehensive competitors. 

But is that actually true?

There’s No I in WeChat

The best-known super-app is China’s WeChat, which consolidates numerous functions into an all-in-one platform for users. But WeChat is a state-backed app that operates in a monopolized, protected market. 

WeChat’s success shouldn’t be misinterpreted as a signal of true market demand, especially in regions where consumers value choice and autonomy. Indeed, super-apps are most popular in Asia, Africa and Central America, while less common in North America. Why? In super-app markets, many consumers’ first experience with the internet occurred in parallel to the introduction of smartphones, so super-apps were designed for hyperconnectivity from the start, rather than being retrofitted to users who already had a wide-ranging digital footprint.

In the Western market, however, the best products are borne of competition, which drives innovation and forces companies to do better than the rest. Consumers tend to demand purpose-driven applications that provide more focused value and an enhanced user experience, and they are usually just better.

Master of One

Take, for example, the fact that Google Chrome is the most popular web browser in the United States, even among iOS devices — despite the automatic presence of Safari on Apple phones and computers. 

Or, consider BeReal, an app that essentially reduced the functionality of similar apps like Instagram – it prompted friends to share one picture, once a day, wherever they were, under time constraints – but initially managed to gain incredible momentum and earn a large following. Its success came from offering a unique narrative and a hyper-focused experience, despite being quite similar to the widely popular Instagram. 

The separation and specialization of app functions ultimately benefit both consumers and entrepreneurs. Unlike the “jack-of-all-trades, master-of-none” model of super-apps, specialization encourages the best possible user experience and allows companies to do that one thing really well, outperforming the market. 

This isn’t to say super-apps are doomed to fail, but neither will they swallow the market whole – especially in a free market. Focused apps are more viable than ever, and only the best will survive. 

Super-Apps Can’t Promise Super Experience

When an app attempts to expand into various domains, new value is added often at the expense of the clarity and simplicity of its original value. The lateral growth of these “extensions” ultimately limits and dilutes the app’s ability for overall vertical growth. 

Furthermore, different services require different user experiences, so the diversity of user interfaces within a single super-app can impose cognitive overload on the user, adding friction, and eroding the general value.

They also run the risk of feature bloat – the phenomenon in which the addition of too many features makes an app slow to load, impedes user engagement, and potentially relegates some functions to being “second class” in consumers’ minds. For users, the question becomes whether the loss in value for one use case is compensated by the increase in value in the new domain. 

Similarly, if a super-app crashes or experiences downtime, the inconvenience is magnified because so many crucial functions are tied to a single platform. And super-apps can pose potential risks in terms of safety and data privacy, with only 35% of U.S. consumers reporting that they would feel comfortable allowing a super-app to manage their finances.

Market Share Is Mindshare

The alternative to super-apps are the products that give consumers the choices they prefer while offering simpler, easier to use, specialized functionality that meets users’ specific needs.

But fighting for market share is challenging – in 2023, there were 257 billion app downloads globally. As entrepreneurs strive for growth and profitability, many learn the hard way that over-expanding a given offering shifts focus away from their core business. Every additional feature may jeopardize the original value the app provided for users.

Take consumer packaged goods companies, for example. In order to grow, they often expand their line of individual products, betting on customers’ loyalty to their brand and love of variety and choice. More ketchup and condiment flavors mean more “shelf space,” which means more sales. 

Moreover, market share is hard to purchase. Even when an existing player wants to acquire or merge with another – with the hopes of combining their offerings – the ability to do so is limited by antitrust and competition authorities.

Market share is dependent on mindshare, so having multiple value propositions can confuse or repel users – by trying to combine everything in one solution, you can end up offering nothing. Alternatively, by offering high-quality, specialized experiences, entrepreneurs can focus on delivering unique value, building loyal user bases and capturing market share.

Build A Super Good App 

Only time will tell if X users actually want to use the platform for a new bevy of needs and functions. However, it is more likely that Western consumers will continue to seek out the best quality, highly specialized apps. In a competitive market like that in most Western countries, specialized apps that offer clear value and enhanced user experience are what consumers crave and entrepreneurs build best.

So instead of aiming for “super-app” status, apps should simply strive to be super.

The post We don’t need “super-apps” – just apps that are super appeared first on SD Times.

from SD Times https://ift.tt/5SaMx1e