In today’s digital age, technology has revolutionized the way we conduct business. One of the most significant changes in recent years has been the rise of mobile applications, particularly in India. With the proliferation of smartphones, Indians have embraced apps as a way of life. From ordering food to booking a ride, from watching movies to shopping online, mobile apps have become an essential part of the daily routine for many Indians. However, the rapid growth of Indian apps has created some concerns for traditional businesses. The rise of digital technologies and mobile apps has changed the way businesses operate and has disrupted many conventional business models.
In this article, we will explore how Indian apps are affecting conventional business models and what businesses can do to adapt to this new digital reality.
The Rise of Indian Apps
The rise of Indian apps is a phenomenon that cannot be ignored. According to a recent report by App Annie, India has emerged as the world’s fastest-growing market for mobile apps. Indian consumers spent over 7 billion hours on apps in 2020, up by 25% compared to the previous year. In addition, the number of app downloads in India grew by 40% in 2020, making India the second-largest market for app downloads after China.
The most popular apps and Super Apps in India are those that offer convenience and ease of use. For example, food delivery, payments, instant messenging apps such as Zomato ,Swiggy,Tata Neu, Paytm, Clap messenger, My jio, Troop messenger and ride-hailing apps such as Uber and Ola have become household names in India. Similarly, e-commerce apps such as Amazon and Flipkart have gained widespread popularity, especially during the COVID-19 pandemic, as people turned to online shopping for their daily needs.
How Indian Apps are Disrupting Conventional Business Models
The rapid growth of Indian apps has disrupted many conventional business models. For example, the rise of food delivery apps has affected traditional restaurants and eateries. With the convenience of ordering food online, many consumers now prefer to order food from the comfort of their homes instead of visiting a restaurant. This has led to a decline in footfall for traditional restaurants, and many have been forced to adapt by partnering with food delivery apps.
Similarly, the rise of ride-hailing apps has disrupted the traditional taxi industry. With the ease of booking a ride on a mobile app, many consumers now prefer ride-hailing services over traditional taxis. This has led to a decline in business for traditional taxi operators, and many have had to adapt by partnering with ride-hailing apps or by offering their own app-based services.
The Impact of Indian Apps on Small Businesses
While Indian apps have provided new opportunities for businesses to reach a wider audience, they have also had a significant impact on small businesses. Small businesses, such as local retailers and mom-and-pop stores, have struggled to compete with e-commerce giants such as Amazon and Flipkart. The convenience of online shopping and the wide range of products available on these platforms have made it difficult for small businesses to attract customers.
In addition, small businesses have also had to contend with the high commission fees charged by food delivery and ride-hailing apps. These fees can be as high as 30%, which can significantly impact the bottom line for small businesses.
