A mobile app is a computer program designed to run on a mobile device such as a smartphone or tablet. In the context of e-commerce, the transition to Mobile First is no longer optional—it is a requirement.
Learning Objectives
By the end of this chapter, you will be able to:
- Compare native, mobile web, hybrid, and progressive web apps.
- Explain the role of app stores and their commission on digital sales.
- Describe how apps make money and how firms judge whether an app is working.
- Choose a sensible mobile strategy for a business in Nepal.
1. Types of Mobile Apps: A Comparison
There are three primary ways to build a mobile presence. Each has trade-offs in terms of cost, performance, and user experience.
| Feature | Native Apps | Mobile Web Apps | Hybrid Apps |
|---|---|---|---|
| Development | Specific for iOS/Android | HTML5/CSS/JS (Browser) | Web tech in native wrapper |
| Performance | Fastest / Best UX | Slower / Limited by browser | Moderate |
| Device Access | Full (Camera, GPS, FaceID) | Limited | High |
| Distribution | App Stores (Google/Apple) | Web (URL) | App Stores |
| Cost | Highest (2 separate codebases) | Lowest | Moderate |
flowchart TB
Mobile[Mobile Presence Strategy]
Mobile --> Native[Native App]
Mobile --> Web[Mobile Web App]
Mobile --> Hybrid[Hybrid App]
Mobile --> PWA[Progressive Web App]
Native --> Store[App Store Distribution]
Native --> Perf[Best Performance]
Web --> URL[Browser URL Access]
Hybrid --> Wrap[Web in Native Wrapper]
Figure 1: Mobile app types and deployment options
2. App Stores and the Ecosystem
The mobile ecosystem is dominated by two major players: Apple (App Store) and Google (Play Store).
- Role: They act as intermediaries, providing security, payment processing, and a centralized marketplace.
- The “Tax”: App stores typically take a 15–30% commission on digital purchases (in-app purchases), which is a key consideration for e-commerce business models.
3. Mobile Presence Strategy
Firms must decide how to reach mobile users:
- Mobile-Responsive Website: A single website that adjusts its layout for mobile screens.
- Dedicated Mobile App: Offers a more immersive experience for loyal customers (e.g., Daraz).
- Progressive Web Apps (PWAs): Web apps that can be “installed” on a home screen and work offline, bridging the gap between web and native.
4. How Apps Make Money
| Revenue model | How it works | Example |
|---|---|---|
| Sales of goods/services | The app is a store or booking channel | Daraz, Foodmandu, Pathao |
| Transaction fees | A small fee or commission on each payment or booking | Wallet and ride-hailing commissions |
| Advertising | Free app with ads shown to users | News and calendar apps |
| Freemium | Basic features free, extra features paid | Premium plans in productivity apps |
| Subscription | Regular payment for continued access | Video and music streaming |
| In-app purchases | Buy digital items inside the app | Games (subject to app-store commission) |
5. Choosing a Mobile Strategy: A Worked Example
A bookshop in Kathmandu sells about 40 orders a week online and wants a “Daraz-like app”.
| Option | Rough cost and effort | Fit for this shop |
|---|---|---|
| Mobile-responsive site | Lowest; one site for all devices | Best first step: works from Facebook ads and Google search |
| PWA | Low to moderate; add home-screen install and offline catalogue | Good upgrade when repeat customers want quicker access |
| Hybrid app | Moderate; one codebase, two stores, ongoing updates | Only if repeat buyers are many and push notifications are needed |
| Native apps | Highest; separate iOS and Android development | Not justified at 40 orders a week |
Decision: build a fast mobile website with wallet and COD checkout first, then measure repeat purchases. An app makes sense only when enough loyal customers would install and keep it.
6. Measuring an App
- Downloads and installs: how many people got the app (and the cost per install).
- Active users: daily and monthly active users (DAU/MAU).
- Retention: the share of users still using the app after 7 and 30 days.
- Conversion and order value: how many users buy and how much they spend.
- Ratings and reviews: store ratings strongly affect new installs.
The Mobile App Landscape in Nepal
Nepal has seen a “Mobile Leapfrog” effect, where many citizens used a smartphone before ever using a traditional desktop computer.
1. The Rise of “Superapps”
In Nepal, Hamro Patro is the best example of a “Superapp.” What started as a simple calendar has grown into a platform for news, remittances, astrology, and even e-commerce (Hamro Gifts). This strategy keeps users engaged within a single ecosystem.
2. Government Innovation: Nagarik App
The Nagarik App is a milestone in Nepal’s digital infrastructure. By linking citizenship, PAN, and educational records, it simplifies government-to-citizen (G2C) e-commerce tasks like paying vehicle taxes or renewing licenses.
3. Fintech & Ride-Sharing
The most successful native apps in Nepal are in the Fintech (eSewa, Khalti) and Logistics/Ride-sharing (Pathao, InDrive) sectors. These apps rely heavily on native device features like GPS and Real-time Push Notifications to function.
4. Connectivity Challenges
Developing apps for Nepal requires accounting for:
- Variable Data Speeds: Ensuring apps are lightweight (small download size).
- Offline Functionality: Allowing users to browse products even with an unstable connection.
Discussion Questions
- Compare a Native App and a Mobile Web App. In which situation would a small Nepali startup choose a Web App over a Native one?
- What is a “Superapp”, and why is this model becoming popular in developing markets like Nepal?
- How do Push Notifications serve as a marketing tool for apps like Daraz or Foodmandu?
Summary
Firms can reach mobile users through native apps, mobile web apps, hybrid apps, or progressive web apps, trading cost against performance and device access. App stores provide distribution and payments but take a commission on digital sales. Apps earn money through sales, fees, ads, freemium, subscriptions, and in-app purchases, and they should be judged by retention and active use, not downloads alone. In Nepal, superapps, the Nagarik App, fintech, and ride-hailing show the power of mobile, while data costs and connectivity call for light, offline-friendly design.
Key Takeaways
- Native apps perform best but cost the most; mobile web apps are cheapest and easiest to reach.
- PWAs combine web reach with app-like features such as home-screen install and offline use.
- App stores take 15–30% of digital in-app sales.
- Retention matters more than download counts.
- Most small businesses should start with a strong mobile website.
Exam-Style Questions
Short answer
- Differentiate between native apps and mobile web apps.
- What is a progressive web app (PWA)?
- What is a superapp? Give a Nepali example.
Long answer
- Compare native, web, hybrid, and progressive web apps, and recommend a mobile strategy for a small Nepali business.
- Discuss the mobile app landscape in Nepal and the revenue models apps use.
