Now that WhatsApp has a new local business directory, Facebook is taking the next step in turning it into a critical connector for more functions. WhatsApp users can now tap on ‘Businesses Nearby’ in their contact list to see a list of active local business profiles in the app. Through tapping on the business’ full profile on Facebook, users can learn more about their products and get in touch with them directly.
Because WhatsApp is already the most popular messaging platform in many regions, Facebook has the opportunity to turn it into an eCommerce giant that could power the digital transformation in developing regions and make WhatsApp the essential, day-to-day tool for billions of people. In the event that they manage to get it right.
Chat apps in China have evolved into functional utilities in that region, with people paying for everything from public transportation tickets to their daily groceries through messaging apps.
Since COVID mitigation efforts have been underway for a while now, WeChat has been instrumental in helping to manage people’s movements and prevent the disease from spreading.
On the basis of this, Facebook has been trying to make messaging apps a more central element in western regions for years, but thus far, most of those efforts have fallen flat. In 2016, Facebook’s F8 developer conference featured Messenger Bots, but they didn’t catch on, and other elements popular in China, like QR codes, haven’t been as widely adopted in other regions (at least until COVID came along).
Whatsapp on the other hand, offers a completely different opportunity in this regard. Due to its presence in emerging markets like India and Indonesia, Facebook is already at the forefront of the digital transition, which will allow it to guide user behavior from the start, and via a platform that’s already available on almost every mobile device.
As a result, new eCommerce tools such as this are vital.
With over 175 million people already messaging businesses every day, this feature could be a valuable addition in a broader sense as well as in terms of increasing business discovery.
It is possible that Facebook will be able to generate revenue from WhatsApp, which it purchased for $19 billion in 2014, if all goes well.
