Earlier quoted context omitted.
Korea is one of the 4 countries that I know of where a non-Google firm holds significant market share in search. One of only 2 democracies, the other being Japan. And Japan is ambiguous as their local player (Yahoo Japan) has been using Google for indexing for years (but is now switching). Instant messaging, online payments, online shopping, second hand market place, domestic hotel bookings, email are all local tech…
This is really great insight; thanks for sharing. China is another country that has developed its own local apps, mainly because many global ones are banned there. Even if Google, Uber, and others had free rein, I don’t think they could compete with the existing options. The local apps are so tuned to Chinese culture, an American app just wouldn't be intuitive to them. Do you think the local apps, aside from dating,…
> Do you think the local apps, aside from dating, are better than their U.S. counterparts, or is it mainly due to their strong local momentum? Could the Western apps compete in that market? It sounds like Uber is making some inroads.
Yes, they're better.
The first reason being what you touched upon with China. To give an example; Meta will almost never consider developing some specific feature or local integration purely for Italy, despite almost everyone in Italy using it. This is an awful situation, really, but it's just because from Meta's perspective it doesn't push the needle [1]. What if instead of Whatsapp all of Italy used ItaliApp? They'd be busy fulltime doing local integrations, things that make sense for Italians. There's nothing else for them to do. They would probably have tried at some point to go abroad, utterly failed, and from then on just focused on the local market. How do you improve revenue from a market, offering a free app like instant messaging, when you already have 99% penetration? Make people use it more. How? Useful features.
Second reason is much less enshittification. Now I think this effect would be less severe for ItaliApp, as part of this is cultural in Korea, but it'd still be there. Given ItaliApp will not turn into a trillion dollar behemoth, if it enshittifies too much, there's more chance of competition popping up. Either local, or the neighboring EspañaApp sensing an opportunity. The Google maps comparison I linked to at the bottom is the best example. US apps can be great - many years ago, Google maps used to be. They just no longer are.
Uber is gaining ground mostly through tourists and short-term expats. The biggest local taxi app took far too long to add foreign credit card support. But like I said, Uber here is still a JV, did not start out as Uber, and I'm fairly sure they still run their ops here much more locally than they do in e.g. European countries. It remains to be seen whether they'll keep on growing, but for now among locals I still put their market share at [1] I actually think they're leaving a lot on the table here, but I could be wrong.