Understanding why Facebook Messenger, WhatsApp, and Instagram Aren’t Really Competing
Recently Facebook raised quite a few eyebrows by purchasing several companies. The company spent an estimated $1 billion on Instagram and $19 billion to buy WhatsApp. The social media company also announced they will be releasing the Facebook Messenger app which will encompass all messaging and e-commerce. It certainly raises the question how all of these companies are seemingly cooperating while working under one roof with overlapping responsibilities and roles.
Facebook’s recent F8 conference discussion about the three apps hinted at integration and cooperation rather than rivalry. Facebook Messenger can be used globally to send messages through Facebook. WhatsApp focuses exclusively on providing a simple messaging product while Instagram is devoted to photographs. WhatsApp has an astonishing 750 million users According to the company’s cofounders joining Facebook was an easy decision. By joining the huge and successful company they are ensuring they will have respectable servers and engineers working on their apps which frees up more time to focus on their true talents. When the apps or developers need resources Facebook provides.
One of the questions that was asked during the F8 conference was how the three companies that all do similar things are all working together. While WhatsApp and Facebook Messenger are both Messenger Apps under one company’s roof they continue to work independently of one another. While they do share ideas and technological advances the two continue to remain focused on their respective talents. While Facebook could create an all encompassing ‘super’ Messenger App it is likely that such an idea would be slow and unreliable. By maintaining each company’s focus in stand-alone apps users really get the best experience possible.
Facebook has over 1.2 billion active users every month but has still hit stagnation in recent years. It may be leading the social media frontier in America but globally it is not the most popular messaging services. WhatsApp is much more popular and Facebook hopes to fill global gaps by absorbing this company. By absorbing Instagram Facebook hopes to additionally draw in those users who chose to use the service simply because it is not Facebook.
While the current plan is for the Facebook Messenger to create a platform which allows WhatsApp and Instagram to work independently, there are definitely rumors that all of the three products will merge into one all-encompassing app. Right now, Zuckerberg is much more interested in the instant results. With all these companies he will reach around 2 billion active users each month and user bases in just about every country around the world.
Jeff Ramson is a Investor Relations Expert with over 25 years of Wall Street experience. Ramson helps emerging public and private companies gain traction within their industry, to help develop their business.