Mumbai, Apr 14 (PTI) Tata Sons chairman N Chandrasekaran on Thursday said Tata Neu, the conglomerate’s ambitious digital bet, is based on an open architecture that will permit non-group companies’ offerings as well.
The ‘super-app’ currently hosting products and services of group companies in lifestyle, travel, hospitality, grocery, financial services has witnessed 2.1 million downloads since its launch on April 7, Tata Digital’s chief executive Pratik Pal told reporters, adding that there has been a “significant” number of transactions as well which have surprised the group executives.
Chandrasekaran said the platform is based on open architecture principles which will be open to hosting non-Tata group offerings as well eventually. It is starting with group companies, will add more of group companies’ offerings in the next few months and eventually, host offerings of non-group companies as well as per the feedback from the customers.
It can be noted that while Neu is the first super-app by a conglomerate, it will be taking on the likes of Amazon which are neutral marketplaces having offerings from multiple vendors, hence offering a wider choice to consumers.
Citing the grocery offerings from group company Bigbasket or pharma ones from 1mg, Pal initially said that the app already has a wide assortment of offerings, but will also look at other companies offerings.
Replying to a specific question that whether the platform will have offerings from the largest carrier Indigo (which competes with group’s brands like Air India, Air Asia or Vistara), or Oberoi Hotels (which competes with Indian Hotels), Mukesh Bansal, the president of Tata Digital, hinted that the same has already been discussed.
“Some of the examples you mentioned, we are thinking about them very actively. Ultimately, the selection criteria will be that the consumer must get all the choices available,” he said.
Many of the group companies already have a digital presence, while it had also attempted an e-commerce push through Tata Cliq, learnings from which have been internalised, as per group executives.
Bansal said ‘Neu Pass’, the loyalty programme on the platform is its biggest hook to get consumers and prod them to shop more. In the pilot phase, the Tata Group has seen that consumers buy a product or service, earn reward points and then use the points to buy more. Pal termed the reward programme like a “flywheel”, while Bansal said that eventually, the idea is to see that at least half of the consumers consume more than one brand’s offering on the platform.
It can be noted that typically, companies have had to sacrifice profits or also burn cash in pursuit of user engagement and hardly any e-commerce platforms are profitable.
Chandrasekaran acknowledged that there will be investments that the group will have to make on the app, but sought to dispel fears by saying financial metrics are on the radar.
“We will certainly drive a lot of strong financial outcomes including profits and revenues,” the chairman of the group, which is the only investor in the platform, said.
Bansal said at present, building the product, driving engagement and making it the most relevant for the consumers is the priority for his company, even though some investors have approached it. Eventually, it will look at having external investors, he hinted.
Chandrasekaran denied talk of the group being late in getting the app together and made it clear that the timelines that they had in mind have been adhered to over the last two years of building such an offering. Amid heightened talk of difficulties faced by consumers and some criticism of its features, the group chairman said all such feedback is welcome.
Pal explained that the app experienced a glitch for three hours on the launch date because of very high interest among users, but added that the app has stabilised now.
Chandrasekaran, who heads the over USD 100 billion group which had to acquire a slew of companies like 1mg, Bigbasket etc to build the consumer offering bouquet on the super-app, said the Indian economy is poised to grow over time which will see the per-capita incomes double or treble, hence offering the biggest opportunity for the app.
Pal said the group’s ultimate target is to ensure that every Indian consumer shops on the app for all her needs, which will give it the required volumes. PTI AA MR MR
