Technology

WhatsApp’s unprofitable nature a problem for Facebook in India

WhatsApp chat open with a pen on it

India is a country of people who loves free things and WhatsApp is one of those free things. It is an application which has engagement like no other in the country. Indian people absolutely adore this and they are using the application like no other. A country where anything and everything can be sold and bought, WhatsApp is a feature which is extremely popular and widely used for everything. India is a country which uses WhatsApp for all kinds of things, from proposing love to extravagant business plans.

WhatsApp has an engagement which can be matched by no other app in the country. Even Facebook, which is the largest social media platform in the world is quiet nowadays, Instagram is rising each day and Twitter is stagnant. It is WhatsApp that has hit the right notes and the reason for the same is that it is ad-free, it is totally free and one can easily share videos and photos without breaking any sweat.

That being said, the fact that it is ad-free and free of cost is itchy for the Facebook CEO Mark Zuckerberg. This is because there is so much engagement on WhatsApp that it hurts the other social media apps of Facebook in India and it hurts the engagement of the apps that can be monetized. WhatsApp is being unprofitable since day one. That is because the company cannot monetize the application without giving ads on it which will totally hurt the user experience.

Zuckerberg talked about the same, he was talking on the lines that everyone loves WhatsApp because of its privacy and that is the future of the social media companies. He said, “As private platforms have grown, in some cases we’ve seen some cannibalization of the more public platforms in countries like India, where WhatsApp is very popular. I believe building out this private social platform is a much greater opportunity than it is a risk.”

“You should expect that we won’t store sensitive data in countries where it might be improperly accessed because of weak rule of law or governments that can forcibly get access to your data. Our stance on data localization is a risk. That is, if we get locked in a major country, that will hurt our community and our business,” he further added.

That being said, Facebook is having a problem with money. The reason for that is the monetization ability of WhatsApp which it cannot use. That being said, it will be interesting to see how the company goes about monetizing WhatsApp without intruding with the interface of the application.

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