Does Europe need an all-in-one app?

BigTechs’ Super App Ambitions

Apple has just launched a savings account with Goldman Sachs, Twitter now supports stock trading, and Meta is expanding WhatsApp's pay service. These moves mark the start of a BigTech 'super app’ race.?

What is a Super App? Many resources define Super Apps as a “Swiss army knife.” According to Andreessen Horowitz, a super app is “an application that builds upon its core functionality to mix and mash a bunch of seemingly unrelated services — but ones the user would need or want to do anyway — into one place. Imagine a single app that allows you to shop for groceries, pay your rent, review work documents, refill prescriptions, book a trip, and chat with friends, interest groups, and businesses — that’s a super app.”

The race to develop the most inclusive Super App goes beyond providing the most comprehensive customer experience, and instead focusing on the answer to "Mirror mirror on the Wall, Who's the Biggest BigTech of them all?"

"Bigtech players' Super App ambitions are not about making a WeChat clone. Instead, these companies are steadily sprawling out to control more aspects of consumers' online lives." CB Insights.

It was all started by Tencent, though: the all-in-one service provided by WeChat offered a stickiness and convenience which helped them expand throughout Asia. However, similar attempts in Europe and the US have not been so successful, making technology giants believe there is an unfilled gap in the market for cunsumers in the West. Do we really need this gap filled, though??

Consumers might use TikTok for e-commerce and product discovery or Apple products for financing. Does this mean they would want a 360-degree service from Apple or TikTok? How many multifunction apps do (European) consumers have on their phones anyway?

In the end, a Super App should go above and beyond, offering several different segments of services at once, including e-commerce, delivery, health, travel, finance, media, and more. A Super App should make apps offering niche services obsolete. With this thought in mind, BigTechs expanding into the FinTech vertical represents an important step, but not the whole journey. The real question is, how many additional layers can BigTechs offer successfully en route to achieving??Super App status?

There are other challenges beyond market share and service diversification for Super App providers. Quoting CB Insights, "Of course, significant obstacles exist for Super App wannabes, such as gaining the consumer trust needed to handle so much digital activity while also benefiting from network effects in a soon-to-be-crowded space. But the allure of Super Apps has already taken hold across the tech landscape. Big players are on a super-sized collision course in 2023 and beyond, competing for increasingly overlapping aspects of consumers' online lives."

Does Europe?want?an all-in-one app?

Last, but not least, BigTechs must remember the need to convince regulators while canvassing their Super Apps. Most regulators are already on edge about BigTechs, waiting for a fellow regulator to set some precedent with a data-use crucifixion. Unfortunately, BigTech’s working towards additional reach and control, spanning over more categories of personal data, will only escalate the process. This crucifixion could happen sooner rather than later in Europe, thanks to the Digital Markets Act.

"Some large online platforms act as "gatekeepers" in digital markets. The Digital Markets Act aims to ensure that these platforms behave fairly online. Together with the Digital Services Act, the Digital Markets Act is one of the centerpieces of the European digital strategy."

As per the Digital Markets Act, gatekeepers (BigTechs) will not be able to

• treat services and products offered by the gatekeeper itself more favourably in ranking than similar services or products provided by third parties on the gatekeeper's platform,
• prevent consumers from linking up to businesses outside their platforms,
• prevent users from un-installing any pre-installed software or app if they wish so, and
• track end users outside of the gatekeepers' core platform service for targeted advertising without effective consent having been granted.

The new framework codifies the European distrust of technology giants, particularly around privacy and fair markets, making the prospect of a Super App in Europe even more unrealistic.?

BigTechs should work towards more transparent and efficient data use instead of aiming to collect, process, and commercialize more data. Otherwise, even the most fanatic users might be unable to justify their data monopoly.

Here is what the Economist has to say about Twitter's Super App ambitions, "Doting references to Tencent's WeChat provide some clues—earlier this year Mr. Musk described the Chinese super-app as "Twitter, plus PayPal, plus a whole bunch of other things, and all rolled into one with actually a great interface. What is clear is that Mr. Musk will face obstacles in his path."

What are your thoughts? Are you looking forward to a Super App?

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