Bundling and Superapps

In many parts of the internet or connectivity businesses, “bundling” is the way value is created. Consumer-focused internet service providers or mobile operators bundle in video streaming subscriptions or combine mobile and fixed service. 

But the value of bundling seems to vary from market to market. In some markets, the "natural" bundle has not seemed to be "fixed plus mobile service," as logical as that sounds in some markets. But bundling and related concepts such as "ecosystems" often are attempted in many industries. The older idea of walled gardens is an example of bundling.

Data centers create ecosystems of value around the colocated networks, app providers and business relationships that add value based on physical proximity in the data centers. 

So now app providers also are looking to create value by bundling, creating superapps that provide multiple functions all within one walled garden. That can include functions such as messaging, payments, e-commerce, content and other features that create an ecosystem. The advantage is the ability to capture user behavior and data while immediately using that data to enhance value across all the apps and features. 

Other value also is created: increased usage, more engagement, payment opportunities and decreased churn. More “stickiness,” in other words. 

Some bundles make more sense than others. Up to this point, superapps have not seemed so logical in western hemisphere markets, Europe, Africa or the Middle East and parts of Asia. 

Inevitably, superapps will be tried in those regions.