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I hope this tweet does not age well. https://techcrunch.com/2020/04/13/popular-apps-download-and-revenue-take-a-hit-in-india-as-people-stay-home/">https://techcrunch.com/2020/04/1...
On 2nd April,had (uncharacteristically pessimistically) shared on a super panel by @IndiaQuotient @sinhamadhukar @anandlunia @vinaykrsinghal @frdahsan that in Covid, content & community apps in India would Degrow.
On 2nd April,had (uncharacteristically pessimistically) shared on a super panel by @IndiaQuotient @sinhamadhukar @anandlunia @vinaykrsinghal @frdahsan that in Covid, content & community apps in India would Degrow.
Here& #39;s a short thread explaining why I said what I did back then. @TechCrunch @refsrc
Most (not all) content/ comm apps rely on Bharat User for crazy growth. The Bharat user is typically a prepaid cell phone plan user (like 90%+ Indians) able to buy plans due to:
Most (not all) content/ comm apps rely on Bharat User for crazy growth. The Bharat user is typically a prepaid cell phone plan user (like 90%+ Indians) able to buy plans due to:
a. jobs in cities as driver, delivery boy, watchman, warehouse worker OR
b. dependent on repatriation of funds from urban family to rural (money from urban goes a long way in rural re PPP) to buy prepaid cards OR
c. enabled by @reliancejio to subsidize cost of coming online.
b. dependent on repatriation of funds from urban family to rural (money from urban goes a long way in rural re PPP) to buy prepaid cards OR
c. enabled by @reliancejio to subsidize cost of coming online.
The situation has changed. The migrant workers who bought cards or helped family to buy these cards are now back home w/o jobs for forseeable future. @reliancejio has had a tumultuous ride with oil prices & other corps to support. (The @Facebook deal is definite shot in arm)
The main reason to buy cards has also shifted. The primary reason was always to call family/financial dealings in urban areas. Today with our migrants home and a purchase decision b/w data and roti, choices are clear. The prepaid card ecosystem will take a hit.
Content & Community apps relying on growth or engagement from Bharat users will see a definite hit in med.term.
Hopefully, @airtelindia( https://telecom.economictimes.indiatimes.com/news/coronavirus-airtel-extends-pack-validity-for-80-million-low-income-prepaid-customers-in-india/74897469)">https://telecom.economictimes.indiatimes.com/news/coro... but more so jio (with the new boost) will hopefully help ride the trough here.
Hopefully, @airtelindia( https://telecom.economictimes.indiatimes.com/news/coronavirus-airtel-extends-pack-validity-for-80-million-low-income-prepaid-customers-in-india/74897469)">https://telecom.economictimes.indiatimes.com/news/coro... but more so jio (with the new boost) will hopefully help ride the trough here.
Btw: had seen a similiar trend when #demonitization had hit india in nov& #39;16. https://economictimes.indiatimes.com/tech/internet/cash-crunch-prepaid-mobile-recharge-volume-dips/articleshow/63839784.cms?from=mdr">https://economictimes.indiatimes.com/tech/inte...
To close Two v. simple thoughts:
1. For the urban population, the internet is up there in our hierarchy of needs. For a large segment (not all) of the Bharat population, a clear case of it being on the same level of gravity is yet to be established definitively.
1. For the urban population, the internet is up there in our hierarchy of needs. For a large segment (not all) of the Bharat population, a clear case of it being on the same level of gravity is yet to be established definitively.
2. Covid is not a 2-3 month event like Demon. was . We should and must expect more shocks. Hence, a question to all apps growing on Bharat user growth. The FB investment in Jio may help weather this period w/data subsidies. But what could be Plan B?
Again. Hoping this tweet does not age well. At @myBabyChakra we also serve many Bharat users & seen 1st hand potential to create impact. We& #39;ve opened up value streams with aspiring urban India since. But still an open question to us all: Will Covid Contract the Bharat Story?
Would love to hear your take.
