A lot is riding on Tata’s consumer digital push.
Tata Group may launch its “super app” as soon as next month, developed to go head-to-head with rivals including Jio Platforms and Amazon.
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Nearing Launch
The app, called TataNeu, was supposed to be launched early last year.
It will arrive accompanied by a major marketing campaign during the IPL tournament in April.
The “super app” brings together many of the conglomerate’s established and recently acquired consumer brands.
Access To Multiple Brands In One App
The app includes BigBasket, in which Tata Digital acquired a majority stake, Croma, Tata Play, TataCLiQ, flight ticketing with AirAsia, IHCL which operates Taj hotel, and Starbucks, which operates in India in a joint venture with Tata Group.
The app provides users options to choose from rival brands and products.
Clicking on any of the links takes the user to the respective apps or website of the related product or service.
Payments Feature
It also allows users to send money and pay broadband, electricity, water and satellite TV bills and secure loans.
The payments feature here is noteworthy since Tata is bidding for the NUE license to help build a new payments infrastructure to compete with UPI.
Rewards System
Tata plans to lure people in by offering them “NeuCoins” as reward where one NeuCoin is equal to Re 1.
It will eventually get rid of different loyalty offerings by BigBasket, 1mg and other services, and use NeuCoins universally.
NeuCoins can be earned across all brands online and at physical locations.
Common Thread Across Brands
The reward system is a key focus area for the company in order to build a “connective layer” for its services spanning various categories.
If it pulls it off, the 155-year-old giant will have developed the largest loyalty program in the country.
Currently, Tata is allowing customers to accrue NeuCoins by shopping with BigBasket and other Tata services directly without having to use the TataNeu app.
Issues: Unusable, Slow, Clunky
Despite testing it with its employees for several quarters and the consequent delays, TataNeu looks anything but modern and executives are trying to work out how to draw people to the app.
The app is reportedly buggy, terribly slow and the integrations merely point to different Tata services via an in-app browser — sometimes with the desktop view on a phone.
A person familiar with the matter said that there’s no major revamp planned either.
Issues: Inconsistent Brand Participation
It is struggling to get some brands, including Starbucks in which its ownership or partnership is limited, to fully or even partially participate in the new loyalty program.
Titan and Tanishq are yet to onboard the app.
A lot is riding on Tata’s consumer digital push.
It is targeting a GMV of $10 billion for the fiscal year ending in March 2023.
Investor Woes
Like Reliance Industries which raised over $27 billion from high-profile investors including Meta and Google for its digital and retail initiatives, Tata Group will also raise money for its super app.
However, two major investors have decided to not invest.
The superapp concept is ambitious but with the way things stand, Tata might have to reconsider that revamp.
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