The internet has witnessed the emergence of super apps in different regions, with China’s WeChat and Alipay dominating the market. These super apps combine various functionalities into a single platform, offering unparalleled convenience to their users. In contrast, Western countries have struggled to adopt the super app model, with companies like Meta, Uber, and Snapchat failing in their attempts. However, Elon Musk’s announcement to transform Twitter into the X app, aiming to take over half of the global financial system, raises intriguing questions about the potential success of super apps in the West.
Why Super Apps Work in Some Countries and Not in Others
Super apps like WeChat and Alipay succeeded in China because they filled a void created by the absence of Google services and a centralized platform. In contrast, Western countries have well-established app ecosystems, making it challenging to replicate the Chinese super app model. This fundamental difference in the app landscape hinders the successful adoption of super apps outside China.
Three Super App Models
To understand the diverse approaches to super apps, it’s essential to recognize three distinct super app models:
- True Super App (e.g., WeChat, Alipay): These apps feature an open third-party ecosystem with downloadable mini programs. WeChat and Alipay successfully combined payments and instant messaging, offering users a seamless experience.
- Local Services Model (e.g., Grab, Gojek, Matuan): Companies like Grab provide multiple local services, such as ride-sharing, food delivery, and more, tailored to specific regions. This model works well in countries with affordable labor and high population density.
- Payments App Model (e.g., Paytm): Paytm, for example, focuses on digital wallet payments and expands to cover various services, from public transport to utilities.
Elon Musk’s X App Strategy
Elon Musk’s vision for X app appears to center around the payments app model. However, challenges loom large, as X app’s growth hack to create a core payment use case faces obstacles like low user adoption of paid features and significant competition from existing payment platforms.
Musk’s goal seems to be to build a mobile wallet for low-frequency payments, such as flights, movies, and utilities. This would require extensive integration with other companies, compliance measures, and fraud prevention. Whether Twitter, as a struggling social media platform, is the ideal vehicle for such an endeavor remains questionable.
Risks and Uncertainties
Transforming Twitter into a super app for payments comes with risks, including resource allocation, user experience, and competition. Twitter’s recent financial struggles, dwindling user base, and the emergence of competing platforms further complicate Musk’s ambitious plan.
Alternative Approaches
Considering the vast resources at his disposal, Elon Musk could have opted for alternative approaches. For instance, he could have built a payments app from scratch, potentially achieving similar results without the complications of transforming Twitter.
Conclusion
Elon Musk’s attempt to create a super app in the Western market, specifically through the X app, is an audacious endeavor. While Musk’s vision is not impossible, it is fraught with challenges, and the choice of Twitter as the platform raises questions. Whether X app can successfully emulate the super app models that have thrived in other regions remains to be seen. Nonetheless, Musk’s determination and unconventional approach make this a compelling story to follow.
In summary, the success of the X app as a Western super app is uncertain, and it faces significant hurdles in its path to realizing Elon Musk’s ambitious goals.