How will AirAsia leverage its customer base for the super app?

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AirAsia Will Utilise Its Existing Customer Database of Over 60 Million Users as a Foundation for Its New Super App

AirAsia founder Tan Sri Tony Fernandes has indicated that the company's extensive customer database, comprising over 60 million users, will serve as the foundational element for its forthcoming super app. This existing user base provides a significant starting point for the venture, which aims to offer a comprehensive suite of services including food delivery, shopping, payments, entertainment, and travel. The development of this "super app" is being undertaken during the downturn caused by the Covid-19 pandemic, a period Fernandes views as an opportunity to concentrate on digital initiatives.
A Robust Customer Foundation for Digital Expansion

The strategy behind the super app directly leverages AirAsia's substantial customer reach. With a pre-existing base of over 60 million individuals, the company possesses a ready audience for its integrated digital platform. This existing relationship with a large customer pool is a critical asset that differentiates AirAsia's approach, providing an immediate user base for services like food delivery and shopping, which are key components of the planned super app.
Focus on Digital Transformation Amidst Industry Challenges

The development of the super app signifies a strategic pivot and acceleration of AirAsia's digital ambitions, particularly in light of the severe impact of the Covid-19 pandemic on the airline industry. Fernandes has explicitly stated that the current downturn, while challenging for the airline, has provided the necessary focus and time to dedicate resources to this digital venture. This strategic emphasis on digital services is occurring even as the group reported a net loss of RM803.85 million for the first quarter of 2020, highlighting a commitment to diversifying beyond traditional airline operations.
A History of Digital Innovation and Diversification

AirAsia's move into the super app space is consistent with its long-standing identity as a digital-first company, as noted by Fernandes himself. The airline was an early adopter of online sales, demonstrating a historical inclination towards digital innovation. Beyond the super app, this digital focus is also evident in ventures such as the launch of its record label, RedRecords, in partnership with Universal Music, aimed at promoting South-east Asian artists. This diversification into entertainment further underscores AirAsia's broader strategy to build an ecosystem of digital services.

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How will AirAsia leverage its customer base for the super app?

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