Thursday, September 08, 2016

App Economy - What is it?

App Economy refers to all economic activities performed using mobile applications. It includes:
  • 1.     Selling of apps
  • 2.     Ad revenue
  • 3.     User base creation for free apps
  • 4.     New entrepreneurial opportunities enabled through mobile applications which did not exist just a few years ago are now becoming a major driver for job creation in developing countries.


Examples often cited are of Uber or Airbnb that created a new business model for anyone with a car (in case of Uber) or home (in case of Airbnb) to be able to provide service and get renumeration for that service. It also lets prospective customers of those services discover the offerings and thus generate a lucrative new business.

In case of Uber the taxi drivers are no more the only drivers that can provide taxi service but anyone who owns a car can register as a driver and provide taxi service in his/her free time and make money in the process. Likewise, in case of Airbnb, anyone with some space in his home can make that space available for a short duration to a visitor thus making higher profit than simply renting the place in the traditional way.  That is how the mobile app enabled economy has been disrupting the traditional business models.

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