Super App: According to ET’s report, just like multipurpose Chinese platform WeChat, social media giants Facebook and telecom giant Reliance Jio are coming together to explore the possibility of a super app. They are reportedly hoping to develop the app using the WhatsApp platform as well as its vast user base.
Development, which is currently under discussion stage, is delayed due to the ongoing coronavirus-induced COVID-19 pandemic. The idea is to start a platform that will give users space to chat, while also letting them buy groceries from Reliance retail stores, through ajio.com for clothes and apparels and JioMoney’s Digital payments can also be made by using. The idea is on the lines of WeChat where users can make digital payments, play games and also book flights and hotels.
This kind of multipurpose app will be beneficial for Reliance Industries in two ways. This will lead to direct B2C connectivity to Reliance’s businesses, as well as informing the company about spending trends among customers.
Facebook-Jio Super-App: Current Status
According to the report, the project is currently in a phase of due diligence, with Morgan Stanley as investment banker.
The project is compartmentalized and the development of the project in one department is not known to any other department. This project will be important for both Reliance and Facebook and both will contribute by bringing funding, expertise in their domain and technical know-how.
However, it is still unclear what the final structure of the project will be. The two giants may form another company to manage the project, in which both will invest in it, or one of them can invest in the other to create a new venture.
The report states that both Facebook and Reliance Jio have hired top notch lawyers in the US to look into all types of legalities.
Earlier, the Financial Times reported that Facebook wanted to invest billions of dollars for a 10% stake in Reliance Jio. However, how this matter unfolds remains to be seen.