Phrase of the week “Super App”, Monopoly or a game changer?
Ethio-Telecom, Ethiopia’s largest telecommunications company, has recently launched its own super app, offering users a comprehensive solution for their daily needs. Ethio-Telecom has elevated its mobile money platform, telebirr, into a super app that provides users with access to an array of services within a single interface, including e-commerce, food delivery, entertainment, utility bill payments, transportation, and more.
What exactly is Super App ?
- Something highly complicated
- Something You need but don’t know why
- Something that’s everything and also Nothing
- Two or more things merged together
In recent years, the term “super app” has been gaining traction in the tech industry. But what exactly is a super app, and why is it such a buzzword? A super app is an all-in-one application that integrates a variety of services and functions into a single platform, providing users with a comprehensive solution for their daily needs.
Okay okay, I am not here to give lectures on super apps and get you board with details. Let’s jump into the interesting part of this article and cook a dinner with critics.
Is telebirr really a super app?
A question from a fellow developer explains it precisely: “Did telebirr just add a web-view to browse other sites and rename the app to “super app”?🤔” . I know right. Technically speaking, a super app is a software application that integrates multiple third-party services and features into a single platform, providing users with a centralized hub for accessing and managing these services.
Currently most of the so called mini apps in telebirr super app are responsive websites, when they are supposed to be actual mini apps. Here is why this concept is critical:
- When building a website there are limitations regarding communicating with the user device(i.e access hardware features like GPS for location)
- There is limited offline functionality(i.e mobile apps can provide offline access to certain features and content, allowing users to continue to use the app even when they are not connected to the internet)
- Limited personalization (i.e mobile apps can leverage data and analytics to personalize the user experience and recommend relevant content and features.).
Personally, I know telebirr has a framework to develop mini apps that gives your mini app access and a way to communicate with the super app host operating system, but developing a project and maintaining your code with the tool they provide is a nightmare, so I understand why companies that showcased on the telebirr super app chose to make their website responsive and put it in telebirr. So did telebirr just become “super app” or “web hub” ?
Do we even have an actual understanding of super apps?
It appears that the understanding of what constitutes a super app is not entirely clear to most individuals. The process of developing a super app takes time and effort, and simply issuing a press release claiming to be a super app is not enough. Moreover, creating a super app from a payment platform alone is unlikely to be successful. A super app requires a large user base that spends a significant amount of time on the app, which is why super apps often originate from social media or messaging platforms such as WeChat, where users spend an average of four hours a day. It is unlikely that a payment platform, where users spend only around 30 minutes a week, can achieve the level of user engagement necessary to create a super app. We know telebirr has more than 30 million registered users, but how many of them are active users and how often do they visit the telebirr app?
Allow me to elaborate on this topic. The success story of WeChat did not happen overnight. Initially, it started as a small messaging app developed by Tencent for mobile devices, but it wasn’t performing well. As a result, Tencent decided to take a different approach and developed the app as a side project. They utilized various marketing strategies to expand their user base, but they didn’t simply declare themselves a super app once they experienced growth. They continued to add new features, such as a game center and other apps that would replace alternative apps, in order to keep their users engaged and to outcompete their rivals. While WeChat had an advantage due to the international social media ban in China, they still had to create an app that could replace local app alternatives and compete with well-established social media apps. The big question will be does telebirr have the technical and marketing capability and also establish a trust with the people(i.e users, developers and startups) to create an app that can compete with established platforms.
Cons of “Super App”
Super apps, as the name suggests, are apps that offer a variety of services to their users. While they are gaining popularity in many parts of the world, they also come with some cons that should be taken into consideration
Monopoly
Super apps can become too dominant in the market, leading to a monopoly. When one company controls a large portion of the market, it can limit competition, stifle innovation, and ultimately harm consumers.
With over 70 million subscribers, Ethio Telecom is the biggest telecommunications provider in the country and has a significant market share. Telebirr app aims to integrate various services such as food delivery, ride hailing entertainment, and e-commerce into one platform, providing users with a one-stop-shop for all their needs. However, critics argue that the integration of multiple services could result in a monopoly, as users may be forced to use Telebirr for all their needs due to its convenience and integration. This could stifle competition from other service providers and limit consumer choice.
Additionally, the app’s integration of third-party services or mini-apps has also been a source of concern. While these services may be happy to be featured on the Telebirr platform for free and gain access to its user base, they could also become dependent on the app and lose their independence. Moreover, Telebirr’s access to user data could give it an unfair advantage over other service providers, allowing it to tailor services to users and potentially even manipulate consumer behavior.
The monopoly is not just on startups it also raises questions and trait against payment aggregators like Chapa, YenePay, ArifPay, and many more others if all applications are accessed from inside telebirr and all payment transactions are processed within telebirr?
Therefore, there are concerns that Telebirr’s super app could result in a monopoly and restrict competition, limiting innovation in the market and potentially harming consumers. It remains to be seen how the Ethiopian government will regulate the app and ensure fair competition in the market.
NB: This is not just monopoly, it is state monopoly. Incase you don’t know the difference between them state monopoly is a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created, owned, and operated by the government.
Privacy concerns
Super apps often collect a lot of user data, including personal information, which can be used for targeted advertising or sold to third parties. This raises concerns about privacy and data security.
Super apps have been criticized for their data mining practices, which pose a significant privacy concern for users. Companies such as Alibaba and Tencent, the parent company of WeChat, are known to create comprehensive user profiles based on their behavior, which has raised alarm bells regarding the extent to which personal information is being monitored and collected. Despite the growing awareness and concerns around data privacy, it seems that some tech companies have not learned from their past mistakes, or are choosing to ignore them altogether.
Some other concerns could be
- Overload of features: Super apps often have too many features, which can make them overwhelming for some users. It can also lead to a cluttered user interface, making it difficult for users to find what they need.
- Dependence on a single app: When users rely on a super app for multiple services, it can create a single point of failure. If the app experiences a technical issue, users may lose access to all the services they depend on.
- Lack of specialization: Super apps often offer a wide range of services, but they may not excel in any particular one. Users may be better served by using individual apps that specialize in specific services.
Concluding Remarks
Aside from critics and concerns,I would be lying if I didn’t shout out loud that the announcement of Telebirr super app has a huge impact on the image of our country. It is a national pride on the international stage. Telebirr super apps have the potential to promote greater efficiency in the economy by reducing transaction costs and increasing the speed and security of payments. This, in turn, can promote greater economic growth and development. Super apps can also provide a platform for small and medium-sized businesses to connect with customers and expand their reach, potentially driving innovation and entrepreneurship. Additionally, the integration of various services in a single app can lead to greater convenience for users and reduce the need for multiple apps, ultimately resulting in a better user experience.
This is all I could get out of my chest for now, thank you for bearing with me till the end of the content. Can’t wait to see more technological revolutions in our country mama Ethiopia.
