Gautam Adani, the prominent business tycoon, is preparing to unveil his highly anticipated super-app, which he envisions as “the Ferrari of the digital world.” In an interview with the Financial Times, Adani revealed that the mobile app would launch in the next three to six months.
Missed Timing and Intense Competition
Adani’s super-app plans come at a time when the tech industry globally is in turmoil, and demand for online services has diminished post-pandemic. Additionally, the Indian e-commerce market is fiercely competitive, dominated by giants like Walmart’s Flipkart and Amazon’s India websites.
Connecting Passengers and Building Downloads
The app’s initial focus will be on connecting passengers at Adani’s network of airports with other services offered by his group. This strategy aims to build up downloads and increase the app’s user base. Adani’s significant presence in the Indian aviation sector, running seven airports, provides a potential advantage in this aspect.
Challenges in Consumer Retention
To succeed, Adani’s app must go beyond the initial connection and ensure consumers return for other services. The Chinese model of aggregating shopping, payments, entertainment, social media, and finance into a single platform has been successful, but replicating it in India may pose challenges.
Competition from Established Players
Indian e-commerce success stories like Tata Group’s Big Basket and Mukesh Ambani’s JioMart have already secured a strong foothold in various niche categories. Online grocery shopping and pharmacy services are among the areas with established competitors, potentially making Adani’s entry more difficult.
Ambani’s Digital Moat
Mukesh Ambani, Adani’s main competitor, has built a digital moat with access to 428 million telecom users through the Jio mobile network. Ambani’s expansion into retail and financial services further bolsters his position.
The Struggle for Profitability
Success in financial services, which is crucial for super-apps, has proven challenging. Even Grab Holdings Ltd.’s financial services division faces significant losses compared to its other units.
Adani’s Aggressive Approach
To compete effectively, Adani Enterprises Ltd. is raising significant funds by selling new shares. The additional resources may be used to strengthen the super-app and explore potential acquisitions.
Uncertain Market Outlook
Whether India will be dominated by a couple of all-purpose mobile applications remains uncertain. The super-app concept’s success and Adani’s ability to navigate the competitive landscape will be closely watched by investors and industry experts alike.
