Super Apps, What Do They Mean For Startups?

By Author: Dinelka Mahaliyana
Total Articles: 33
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The market is seeing a new trend as platform-based business models gain traction, with seven out of ten global enterprises adopting them: the transition from single-purpose to multi-purpose applications, or Super Apps.

So, what exactly are Super Apps and what do they mean for startups?

Let’s define Them!

Super apps are essentially a marketplace that unites internal and external services and offerings under one platform (Lutkevich, 2023). WeChat, Alibaba, and Alipay are the most well-known examples of these apps; they were all originally developed for the Chinese market. It is important to note that while the use of super applications is expanding rapidly in China these days, the trends are easily transcending national boundaries and becoming global.

“A super app is a closed ecosystem for many apps that people would use every day because they offer such a seamless, integrated, contextualized, and efficient experience.”
-Mike Lazaridis, Canadian Businessmen -

The Benefits of Super Apps for Startups

01.Easy to Gain Customers

Based on data by ExplodingTopics.com, ...
... approximately 6.84 billion smartphones are in use worldwide. Furthermore, Statista estimates that 1.2 billion of them use the popular app WeChat. Gartner predicted in 2022 that by 2027, over 50% of the world's population would be active daily users of super applications.

Super applications have not caught on in North America yet, but they are now very popular in Asia, Africa, and Central America. This is due, in part, to the fact that web-only businesses like Amazon, Facebook, and Google gained popularity before cell phones were widely used. Many customers in markets where super apps have become popular initially use their smartphones to access the internet through apps that were intended to be super apps from the beginning.

Hence, there is no doubt that this will help businesses gain customers easily while attracting investors for startup funding.

02. Customer Satisfaction

Super applications bring together previously distinct experiences, which has a substantial impact on the user experience. With only one app, a user may, for instance, schedule a trip to a tropical destination, share photos of it on Facebook, and arrange transportation to the airport.

They also simplify customers' experiences by providing a one-stop shop with a variety of services and features on a single platform. Users will benefit from this since it makes things more convenient and makes the integrated experience more seamless. Overall, this increases consumer loyalty and satisfaction. Additionally, this customer attraction will also help in attracting startup investments.

03. Data Insights

Super applications give companies a unique edge when it comes to obtaining insightful data. Startups can collect a wealth of user data by combining many services into one platform, giving them a complete picture of the behavior and preferences of their users.

This cross-service data analysis is especially helpful since it finds chances for cross-selling and upselling in addition to aiding in the knowledge of individual service interactions. Based on a variety of service interactions, startups can efficiently segment their user base, enabling customized marketing campaigns and promotions that improve the user experience in general. Super applications also allow startups to track user experiences in-depth, exposing behavioral patterns, problems, and opportunities for development, allowing for data-driven decision-making. Thus, there is no doubt that this utilization will help in gaining startup funding.

04.Cost Savings

Well, Super Apps can Mean Cost Saving too!

Super applications are a game-changer for entrepreneurs since they significantly reduce costs.

Compared to developing and marketing separate apps for every service, entrepreneurs can drastically save development and maintenance expenses by combining several services onto a single platform. With fewer resources required for app development, coding, design, and testing can be completed faster and for less money thanks to this streamlined process.

Additionally, startups can profit from economies of scale as the user base within the super app expands, achieving a reduced cost per user acquisition and a larger return on investment. Over time, these cost reductions help businesses carefully deploy their startup funds, putting them toward new product development, improved user experiences, and market expansion - all of which are critical to their long-term viability and success.

05. Adaptability

Super applications give entrepreneurs a significant flexibility edge.

Startups may adapt to shifting market trends and user preferences by expanding and improving their products with the flexibility that comes with having numerous services housed on a single platform.

For startups to remain relevant in a changing business environment, this agility is essential. Super applications make it simpler and more affordable for startups to make the necessary changes, whether it is adding new services, improving current ones, or pivoting to meet emerging demands. This often helps in securing the necessary startup investments required to grow.

Moreover, startups may easily incorporate new features and services because super applications are modular. This implies that entrepreneurs can remain at the forefront of innovation without having to create whole new apps as technology develops and customer expectations change.

Final Thoughts

Startups need to be inspired by fresh ideas and technological advancements that are revolutionizing our world. Finally, super applications provide startups with a plethora of advantages. They lower development and marketing costs by offering a convenient way to consolidate and promote services. Furthermore, super applications have given many entrepreneurs in platforms like EquityMatch (https://www.equitymatch.co/), the flexibility they need to quickly adjust to changing user preferences and market conditions. Super applications are genuinely advantageous for startups' long-term survival since they allow them to expand, acquire valuable data, and establish a strong presence in the cutthroat commercial world.