"We want to be present on the apps that people already use" How can they not see that an app for traffic lights is clearly the wrong approach? Smart traffic lights are working great in many countries without needing an app for them to work.
Everyone wants you to install their app these days. Install my app to turn on the lights, install the app to see the menu at a restaurant, install the app to read information about an archaeological site, install an app to open the automatic doors. As you said, it's 100% the wrong approach.
Except that's not what they want here. What they want is for the apps that most people already use to add support for this.