Whether WeChat, GoTo or Grab: We are talking about so-called super apps that already exist in some countries and regions. These apps offer extensive features such as messaging, payment and ordering in one application. There are no such apps in Germany. Why actually?
A super app is an application that integrates a variety of services on a single platform. Examples include WeChat in China, Grab in Southeast Asia or Gojek or GoTo in Indonesia. These apps offer features like messaging, payments, transportation bookings, food ordering, and much more.
Such an app has not yet become established in Germany or Europe, especially not from a German or European provider. Special apps are regularly used for certain functions, which then only cover this one function.
I’ll even go one step further and claim that such a super app from a German or European provider will not come onto the market in Germany in the foreseeable future. Theoretically, there is of course the possibility of establishing such a super app in Germany or Europe. The demand is certainly there, as is the technical infrastructure and the innovation potential in Europe, especially in Germany, is still great.
However, in my opinion, there are some challenges that not only make the establishment of a super app more difficult, but from today’s perspective probably even prevent it. The four main obstacles are high data protection and regulatory requirements, market fragmentation, cultural differences and user trust.
Super app in Germany: data protection and regulation
One of the biggest obstacles to the introduction of super apps are the strict data protection laws and other regulatory hurdles, which sometimes differ significantly from country to country and would have to be taken into account by a super app, especially if it is to be used across Europe.
These regulatory requirements set high standards, for example with regard to data protection when collecting, processing and storing personal data. A super app that offers a variety of services would have to manage an enormous amount of user data and would affect many sensitive areas that are strictly and differentiated by law.
This would require significant investments in compliance programs and especially in data protection measures to ensure that all legal requirements are met, which in turn represents a huge effort, including from a financial perspective.
Market fragmentation
Unlike, for example, China, where WeChat dominates over Tencent and has a unique position that is also supported by the state, the European market is highly fragmented. In Europe and sometimes even in individual countries such as Germany, there are many, sometimes very established, providers of various services.
This market fragmentation means that a new super app must not only offer compelling technology, but also challenge existing market leaders and lure users away from their platforms. Since the established services are often deeply integrated into the everyday life of users and it is difficult to persuade them to switch, this poses another major challenge.
Cultural differences
Europe is a continent with many different countries, languages, cultures and preferences. To be successful, a super app must take this cultural diversity into account. This includes not only linguistic adaptation, but also taking cultural peculiarities and local preferences into account.
Developing and marketing such an app to be successful in all these different markets is complex and expensive. Furthermore, the adoption of a single platform that integrates all aspects of digital life may be met with greater skepticism in some countries than in others.
User trust
The final key factor that proves to be a challenge in establishing a super app is consumer trust in a single mega-platform that constitutes a super app.
European users are sometimes more skeptical about a single platform that monitors and manages many of their daily activities than users in Asian countries or the US.
The data protection scandals of recent years have increased awareness and concern about the protection of personal data. A super app would therefore have to make significant efforts to gain and maintain user trust.
Conclusion: That’s why there is no super app in Germany
The idea of a super app in Germany is still fascinating, but in my opinion its implementation faces major challenges. As described, there are various major hurdles and it is currently not clear how these can be overcome with reasonable effort. That’s why I think we won’t see a super app in Europe and especially in Germany for a long time.
A possible solution for the future could be to gradually integrate services through partnerships between existing providers and platforms, rather than trying to develop an all-encompassing app from scratch. Companies could work together to create a seamless user experience.
Such an approach could make the effort more justifiable and help create an integrated user experience based on existing solutions. The introduction of a super app in Germany is not theoretically impossible, but requires significant financial, strategic and regulatory considerations.
I’m curious to see whether a company – if necessary. with political support – will face the existing challenges or whether corresponding innovations – as is so often the case – will be promoted in other regions of the world.
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The article Why there is no super app in Germany yet by Carsten Lexa first appeared on BASIC thinking. Follow us too Facebook, Twitter and Instagram.