Disappearing Mobile Apps In 2016

The Trend of Disappearing Mobile Apps In 2016

We see an incredible number of mobile apps for a startup, across all segments in this era of mobile phones. Millions of mobile apps are placed in the App Stores. There is a constant effort for creating a mobile app, so as to increase customer engagement. However, there are many startups that get launched and at a later stage finds it extremely difficult to discover these apps and also download these apps from the App Store.

Due to lacking number of user base, most of these mobile apps faced only one singular fate and that is a complete closure of such apps.

Here, we are about to discuss some of these mobile apps which has disappeared altogether in 2016.

Food Delivery Apps

The mobile apps for a startup on food delivery grew at a hectic pace, being central to all social gathering in the country. The days of hefty discounts and free delivery are over. But, now the venture capitals are drying up and we see a trend in disappearing mobile apps for a startup. TinyOwl, is a pioneering Mumbai-based food delivery app that raised $ 23 million from investors including Sequoia Capital, and has run through all these money and is about to merge with a smaller delivery firm called Runnr. TinyOwl is a food delivery app that has been sending notifications to it’s users about a discontinuation of services from it’s end. The owner of TinyOwl, which is Mumbai-based startup claims that it was a move aimed at a rebranding exercise for the company, as it has plans to relaunch the same as a full-service delivery app.

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We have also seen the closure of Zeppery, a food pre-ordering app and this shutdown happened within a matter of six months. The reason for the closure as stated by the owners were that Indian market was ready for the same model of the app as well as it incurred a higher retention cost.

We see the same trend across the food tech companies in the world, with venture funding dipping by 90 % in a quarter in Europe alone.

Grocery Apps

The Indian mobile apps for startup marketplace is flooded with apps aimed for the grocery stores. The online grocery business is said to hit a bump in the country. One such was the Online Grocery startup called Peppertap. The reason stated behind this closure was more focus on e-commerce B2B logistics business. Next, was the turn of Movincart,  a hyperlocal grocery delivery app and its funders indulged in starting another startup on logistics, which is basically a tech-startup. Grofers another grocery based app also put down its shutters from nine cities.

Most of these startups like Grofers and Zomato has seen increase in volumes in the metros, but they are absolutely failing in the Tier II and Tier III markets, unable to sustain the same growth that was seen in the Tier I cities.

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Dating Apps

The year of 2016, also saw the closure of DateIITians and Cogxio, founded in 2014 and 2011. The reasons cited for these closures were lack of funding, unit economics and of course market competition. There was a lack of investment in consumer marketing which resulted in difficulties faced for retention of customers.

Video Apps

In 2016, we saw the closure of the video sharing app from Twitter called Vine that was acquired in 2012. The company is still running the website, but no new videos are to be uploaded, as that is activity within the app.

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