4 Reasons Why X Might Fail as a Super App

A super app usually promises something specific to users, which is called positioning. For instance, Uber is known for quick and affordable rides, and AirAsia is for travelers exploring the world.

Unlike them, X lacks a clear identity beyond being an “everything app.” This makes it hard for users to see why they should use X for certain things instead of their usual apps.

Creating a universal app in the U.S. is more challenging compared to China. WeChat, which inspires Elon Musk, enjoys government support and holds a monopoly on the market. In contrast, the U.S. has regulations against monopolies through unfair competition laws.

WeChat has received consistent government support and subsidies since its inception in 2011. For instance, the operations of competitive apps such as Facebook Messenger, Line app, and WhatsApp have been restricted for years. And in 2021, Tencent, the owner of WeChat, received subsidies amounting to 100 million yuan.

X’s audience in the U.S. doesn’t seem to be open to Musk’s idea. Over the past year, the number of downloads of the X app has fallen 38% globally and 57% in the US. Thus, the biggest source for new downloads of X isn’t the U.S. —it’s Indonesia and India.

“Loyal audience is crucial for building a digital ecosystem with a super app at its core. X still has this advantage, but it needs to think how to keep it.”

Alex Semenov

CEO at HeyInnovations

Experts say the decrease in numbers is because of X's rebranding and the emergence of tough rivals, especially Threads, which gained 141 million users in five months. X still offers what drew users in initially—quick insights into serious topics and real-time updates on global events. However, the rebranding and its new direction are worrying X's fans in North America.

Ads make up about 90% of X’s income. But following X’s decision not to moderate content, its advertising business is headed for a 54.4% year-over-year decline in global ad spending. Experts say this might result in a $75 million loss in revenue by the end of 2023.

Turning your app into a super app involves several steps: figuring out what it offers, learning from successes and mistakes, and listening to users. If you need help, we've got experience in this. Reach out to us, and we can guide you on transforming your business into a digital ecosystem with a super app.