The popularity of mobile internet and smartphones

Mobile networks are developing rapidly. Global 5G coverage reached 25% in 2021, and 4G coverage reached 85%, covering the vast majority of the planet. Additionally, 75% of the world is covered by mobile phones, with 97% coverage in Asia Pacific at the end of 2021, up 55% from 2016. This is due to the availability of low-cost smartphones and cheaper data plans.

A sizable portion of the population now forgoes computers and instead accesses the internet solely through mobile phones. Because of the limited storage of low-end phones, users prefer easy-to-use super apps that integrate several services over installing multiple apps.

High percentage of unbanked population

Globally, 25% of the global population does not have access to a bank account. In some regions, that number can reach 70%. Super apps frequently provide e-wallet and online payment features, combining online and offline services to give these user groups easy access to online spending.

Horizontal market potential

Demand for digital services in channels like payment, travel, and food delivery is high. However, these developing markets are still in their infancy, so there is no clear winner in each vertical yet. As a result, there are numerous potential opportunities for businesses to combine user needs and pain points, expand their operations horizontally, integrate services across industries, and create super apps.

Regulators' active participation

Some regulators are supportive of this business expansion. For instance, in 2019 the Indonesian government and companies like Gojek, Grab, etc. inked a contract to work together to develop smart cities. When the Jakarta government introduced a policy to ban motorcycles to address traffic congestion, Gojek showed the government data on how many businesses use Gojek and how many people rely on motorcycles for their livelihoods, and the government eventually made an exception for motorcycles in its transportation policy.