LetsChat, a messaging app launched by Chinese internet technology major ByteDance in 2021 to compete with WhatsApp and Telegram in Africa, has been shut down after failing to gain traction against the entrenched popularity of WhatsApp on the continent.
Despite attracting over 7 million downloads, primarily from Nigeria, Mali, Angola, and Côte d’Ivoire, LetsChat struggled to retain users, with its monthly active user base declining steadily in recent months. According to Sensor Tower, a market intelligence firm, LetsChat’s monthly average users peaked in December 2021 at around 440,000 but had dropped by about 33.4% between December 2023 and February 2024, reaching just 83,412 users.
ByteDance’s efforts to promote LetsChat in Africa were extensive, including hiring local staff in Nigeria, enlisting social media influencers, visiting schools to encourage student adoption, and offering cash prizes and ambassador programs. However, these efforts were not enough to overcome WhatsApp’s dominance, which had 500 times as many monthly active users in Nigeria as LetsChat through February 2024.
In a statement on its website, ByteDance announced the discontinuation of LetsChat operations on March 23, 2024, citing a strategic decision to focus resources on more promising ventures. The company acknowledged that LetsChat had been a valuable communication tool but deemed it necessary to shift priorities.
Experts believe that LetsChat’s failure was inevitable, given the entrenched position of WhatsApp and other established messaging platforms in Africa. Benjamin Dada, a Nigerian tech analyst, noted that major players like Meta (formerly Facebook) had already tailored their solutions to the African market, making it difficult for a newcomer like LetsChat to offer a significantly better low-data solution.
While ByteDance’s foray into the African messaging market ended in disappointment, the experience highlights the challenges faced by new entrants in trying to unseat dominant players in established markets, particularly when those incumbents have already invested heavily in localization and user adoption.
In 2020, citing privacy and security concerns after a border clash with China, the Indian government banned TikTok and 58 other Chinese apps nationwide. And earlier this month, the U.S. House of Representatives overwhelmingly passed a bill that could force ByteDance to divest TikTok or face a ban in U.S. app stores.
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