Elon Musk’s ‘super app’ aspirations for X deemed unlikely in U.S. market: MarketWatch By Proactive Investors
Elon Musk, CEO of Tesla (NASDAQ:TSLA), has ambitious plans to transform X (formerly Twitter), which he acquired last year, into an “everything app” named X, mirroring successful super apps in Asia.
This concept aims to emulate the success of Asian ‘super apps,’ platforms that offer a wide array of services ranging from messaging and social media to payments and gaming.
However, industry experts, including Forrester analyst Julie Ask, have cast doubts over the feasibility of such an endeavour within the US mobile market environment, in a telephonic interview with MarketWatch
It seems that despite Musk’s ambition, the concept of a super app is not likely to find fertile ground in the US market.
While the idea may have proven successful in different circumstances and regions, particularly in Asia, it faces a multitude of challenges that make its successful implementation in the United States increasingly improbable.
Scepticism from experts
Julie Ask, who co-authored the recently released Forrester report titled The Super App Window Has Closed, stated: “I don’t know what Elon Musk is doing, I don’t know what he’s thinking.
“The guy has a business model that is advertising. It’s not a place where people shop, hail taxis, buy food, send people money, right? He’s still a long, long way off from a super app.”
These comments highlight the scepticism surrounding Musk’s ambitious plan, pointing out that his advertising-based business model does not easily align with the multifunctional characteristics typically associated with super apps.
Diminished consumer trust in tech companies
The Forrester report suggests that the concept of a single platform catering to various needs—ranging from messaging to payments and video games—is largely foreign to American users.
It argues that super apps such as Tencent’s WeChat and Alibaba’s AliPay emerged in Asia due to unique regional challenges, including slower networks and a lack of online payment systems, that do not exist in the United States.
Moreover, the report outlines four key reasons why a super app would not thrive in today’s US mobile market: diminished consumer trust in tech companies, high competition in the app market, stringent regulations, and a lack of compelling consumer need.
Super apps may have thrived in Asia, but for the US, this one-size-fits-all solution appears to be a distant reality.
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