Tata Group’s newly launched super app, Tata Neu, which is running on an “open architecture”, will host products and services from competing brands in the coming days, said executive Chairman N Chandrasekaran.
The super app currently houses services from major Tata Group brands such as Croma, BigBasket, Tata 1 MG, Tata Cliq and Air Asia among others. Other Tata Group brands Vistara, Air India, Titan, Tanishq, Tata Motors are expected to join the platform soon.
“Our aim is to ensure that Neu becomes a super app that simplifies the life of every consumer from a product, services and financial needs point of view. And for that, the offerings may come from the Tata table or it may come from outside…the decisions on adding new products and services to Tata Neu beyond Tata group will be customer-driven, not contract-driven,” Chandrasekaran told Indian media.
TataNeu application has a rewards mechanism or a loyalty program, called Neu pass, at the centre of its strategy to entice new users. The app users will get rewarded every time they shop, book flights and hotels and more.
Chandrasekaran said that the Neu Pass was not only a loyalty program but also has an integrated financial credit line and is similar to instant loans.
“We have launched the first version of a starting point and our brands are committed together in it with a value proposition, which is globally innovative and slightly progressive of Neu Coins.”
Tata Neu already offers financial services like micro-financing and micro-insurance, which the group said will further amplify its appeal to consumers.
Tata Group revealed that Tata Neu is already witnessing four times the average user spend on its platform than other comparable applications. The super app, which was being piloted during the last few months among Tata Group employees, finally opened up for regular users on April 7.
A “super app” is a marketplace of services and offerings by large companies. The app delivers services and offerings through in house technology and through third-party integrations.
According to analysts, the super app approach is being adopted to de-clutter the number of apps on a mobile phone
Tata Digital chief executive Pratik Pal also told the Indian media that the super-app was downloaded 2.2 million times in the past week and witnessed a “significant” number of transactions since its launch.
Tata Group’s digital arm, Tata Digital operates the super app. Its president Mukesh Bansal, said that higher transaction levels were recorded during its pilot run.
“The average revenue per user (ARPU) pattern that we have seen during our pilot is three-four times that of one seen on comparable platforms. The reason for that is we have a huge depth of category coverage. There is no other solution in India that has such coverage of products and services like the Tata Neu offers,” Bansal informed the media.
Tata Digital is aiming to integrate its offline business with the super app. It said that the benefits availed through the super app can be experienced in physical outlets as well.
The group went on an acquisition spree to build its super application in the last few quarters. It bought majority stakes in online grocery service BigBasket and online healthcare marketplace 1 MG.
The group through Tata Digital also acquired fitness-focused CureFit Healthcare.
Tata Group is currently in talks with several investors, including SoftBank, to raise capital for its tech platform.