Digital platforms' growth strategies and the rise of super apps

Digital platforms' growth strategies and the rise of super apps

2024 | Marc Hasselwander
This article examines the growth strategies of digital platforms and the emergence of super apps. Super apps are all-in-one platforms that offer a wide range of services within a single app, such as messaging, payments, e-commerce, and ridesharing. While some super apps, like WeChat and Alipay, have become dominant in Asia, others, including Elon Musk's X (Twitter), are trying to establish super apps in the U.S. and Europe. The study analyzes how digital platforms evolve from single-purpose to multi-purpose apps and identifies factors that enable them to pursue a super app strategy. Using data from 380 mobility platforms, a regression model is estimated to determine which platforms are capable of becoming super apps. The study also discusses the case of Uber, illustrating the motivations and growth strategies that lead to becoming a super app. The findings suggest that young, agile, and risk-taking firms are more likely to pursue a super app strategy. The study also highlights the importance of internal resources, such as human capital, organizational capital, technological infrastructure, and financial resources, in determining a platform's ability to become a super app. The results show that platforms with a larger user base and more diverse services are more likely to achieve super app status. The study concludes that becoming a super app is an incremental process based on the successful implementation of various growth strategies. The research also provides a conceptual model and testable propositions to guide future studies on this topic. The study has implications for digital platforms, emphasizing the need for long-term planning, strategic decision-making, and understanding the competitive landscape. The findings suggest that digital platforms should focus on innovation, agility, and resource management to achieve growth and become super apps. The study also highlights the importance of regulatory considerations and user acceptance in the development of super apps. Future research could explore the performance and competition of super apps, user acceptance and usage behavior, and the regulatory challenges they pose.This article examines the growth strategies of digital platforms and the emergence of super apps. Super apps are all-in-one platforms that offer a wide range of services within a single app, such as messaging, payments, e-commerce, and ridesharing. While some super apps, like WeChat and Alipay, have become dominant in Asia, others, including Elon Musk's X (Twitter), are trying to establish super apps in the U.S. and Europe. The study analyzes how digital platforms evolve from single-purpose to multi-purpose apps and identifies factors that enable them to pursue a super app strategy. Using data from 380 mobility platforms, a regression model is estimated to determine which platforms are capable of becoming super apps. The study also discusses the case of Uber, illustrating the motivations and growth strategies that lead to becoming a super app. The findings suggest that young, agile, and risk-taking firms are more likely to pursue a super app strategy. The study also highlights the importance of internal resources, such as human capital, organizational capital, technological infrastructure, and financial resources, in determining a platform's ability to become a super app. The results show that platforms with a larger user base and more diverse services are more likely to achieve super app status. The study concludes that becoming a super app is an incremental process based on the successful implementation of various growth strategies. The research also provides a conceptual model and testable propositions to guide future studies on this topic. The study has implications for digital platforms, emphasizing the need for long-term planning, strategic decision-making, and understanding the competitive landscape. The findings suggest that digital platforms should focus on innovation, agility, and resource management to achieve growth and become super apps. The study also highlights the importance of regulatory considerations and user acceptance in the development of super apps. Future research could explore the performance and competition of super apps, user acceptance and usage behavior, and the regulatory challenges they pose.
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