🚨 Announcing...the top 100 consumer genAI apps!
We ranked every AI web product by usage - and for the first time, ranked mobile apps too.
Consumer AI is moving fast, with some major updates since our last ranks 6 months ago.
Our takeaways 👇
I love tracing consumer apps that are now huge back to the very first Reddit post about them.
It's an unvarnished look at the original "wedge" - and the level of doubt every new product is up against.
Some gems ⬇️
Does the Pokémon Company have another hit on their hands?
Pokémon Sleep has racked up 3M global downloads in two weeks.
Even crazier? Gaming pubs have had to warn players not to take sleeping pills to get ahead 🤯
TikTok may be building a Spotify killer.
I got an early look at the new streaming app they just launched in five countries.
Here’s why it could be the first real challenger to Spotify’s global dominance ⬇️
One of the most common mistakes I see from subscription apps?
Making the free product ~too~ good.
Many founders say they'll change the paywall to optimize conversion later on, but that’s hard to do. Here’s why ⬇️
The era of the Gen Z pro athlete is here...
✅ Get to the
#USOpen
Round of 16
✅ Use the interview to promo your YouTube channel
(from the Sabalenka vs. Kasatkina match)
There are 5+ dating apps that each make more than $100M in annual revenue.
And yet, there hasn't been a single friend-finding app to reach massive scale 🤔
Why products with a stated goal of "making friends" will (probably!) never work ⬇️
Pinterest’s annual trend reports are grounded in what 445M MAUs are searching for (and planning).
They claim 80% of their past predictions have come true in three years 🔮
Here’s their forecast for 2023 ⬇️
Generative AI has spawned thousands of new products.
But outside of ChatGPT, what are everyday consumers using? What's growing, and what has flattened?
We crunched the numbers to find the top 50 consumer web products by monthly visits - here's our learnings ⬇️
🚨 New market map!
Our team
@a16z
consumer dove into AI x productivity tools. These products don't just help you organize tasks...they complete them for you.
What we're excited about 👇
There are 1.8M apps on the iOS App Store.
Only 37 claimed the coveted
#1
spot in the U.S. (for at least one day) in 2022.
Here's what they tell us about the current state of consumer apps 👇
I review hundreds of startup job postings each week.
And through my job board, I see which ones drive clicks and applications!
Here's what sets the best ones apart 👇
Heading into 2023 with a job I spent six years chasing is a good reminder to keep pushing even if the path sometimes looks unclear.
(And keep refining your cold emails, this one is terrible 😂)
Hear me out - YouTube Shorts may make major gains on TikTok in 2023.
Shorts reportedly just passed TikTok in global monthly viewers (1.5B vs. 1B), and is now turning on monetization.
You post a TikTok about your new app. It goes viral, getting millions of views and bringing in tens of thousands of users (for free!).
That's the dream, right? But it can quickly become a nightmare. Let's talk about the "TikTok spike" 🧵
What category on Twitch is growing 500% YoY, and allows you to build an audience without showing your face?
VTubing. After blowing up in Asia, it's headed to the U.S. in a major way.
Here's what happening ⬇️
I've always wanted an AI that can prep me for my meetings...so I built one!
It emails me 15 minutes prior with a primer on:
1) Who I'm meeting
2) Where they work
3) Topics to cover
How I did it 👇
Ever wondered what kids are really doing online?
@qustodio
aggregated screen time data from 400k+ kids aged 4-18 - the results are fascinating.
Let’s start with the top apps by daily minutes per user 👇
🚨 The
@a16z
Marketplace 100 is here!
We evaluated more than 12,000 companies (using
@ConsumerEdge
credit card data) to find the top 100 fastest-growing private marketplaces by GMV.
This year saw some major moves - here's what
@zachcohen25
and I found ⬇️
What do marketplaces look like in the age of AI?
Some will grow, some will shrink, and some will disappear. It's a new era for the marketplace model!
My take on who will be impacted - and how 👇
Is TikTok the new TV?
This week, Peacock started uploading full episodes (for free) on the app.
The pilot of a new comedy show racked up 4.5M views in 3 days 🤯
“Off label” use cases of ChatGPT are blowing up:
- Therapist
- Language tutor
- Career coach
- Research partner
This is a signal of consumer demand...and it’s time for startups to strike👇
DoorDash is dominating the U.S. food delivery market.
But that may not be enough to drive the company's future success.
Here's why DoorDash is expanding outside restaurant meals - and what other marketplaces can learn ⬇️
In the AI era, consumer companies are getting traction more quickly than ever.
But what about the elephant in the room - retention?
Our benchmarks
@a16z
from meeting hundreds of companies 👇
Cardinal rule of consumer social - build a giant user base, monetize (via ads) later.
But the current
#1
on the App Store charts, Gas, has made $2M in revenue on 5M downloads in <2 months.
And it's all via subscriptions / in-app purchases! 🔥
These are just four of the 27 trends Pinterest found.
Check out their full report for more on dog birthday parties, origami art, romcom fashion, and more:
Why? We have theories:
1️⃣ The IG social graph doesn't work for a Twitter-esque app. You don't want friends/family reading your tweets 😬
2️⃣ Because posts are tied to real identity (via IG account), it discourages the anon memers, fan accounts, etc. who are heavy Twitter users.
Where does this leave us?
IMO - the long term winner here is likely to be...interest-graph social networks! (like Twitter, Discord, etc.)
Users can discover/ build relationships with people who have shared interests, without looking desperate.
It’s time for the Marketplace 100: 2022 edition, by
@a16z
+
@future
! 🎉
For the third year in a row, we ranked the largest consumer marketplace startups by GMV and traffic.
Here's what we found ⬇️
Our team
@a16z
is on the hunt for genAI-native marketplaces, uniquely built for this platform shift.
But where are the biggest existing marketplaces seeing value, and how are they responding?
How Airbnb, DoorDash, Poshmark, Instacart, and eBay are adapting to the AI age 👇
The Creator Economy gets a lot of hype - but the Expertise Economy may be even bigger.
Not everyone can make content or has an audience. But everyone is an "expert" on something!
What if you could monetize this? 👇
What are the biggest AI products on Discord, and how big are they in the scope of the platform?
The top ten AI apps by invite page traffic 👇
(h/t
@Similarweb
for the data!)
The AI avatar space has another hit!
Epik (from Korea’s Snow) is making ~$250k per day via in-app purchases.
The app is going viral for its AI Yearbook feature, which makes ‘90s photos.
Everyone knows about Notion and Duolingo - but how are early stage startups finding users on TikTok?
Three strategies I’ve seen work for consistent TikTok acquisition ⬇️
Author Lloyd Richard published his first and only novel ten years ago. He had almost no sales.
This week, the book became the
#1
bestseller across ALL categories on Amazon - and sold out. 🤯
How? His daughter posted a TikTok about it, and got 37M views.
Hot take - more subscription apps should test extreme price segmentation.
Worst case the product doesn’t live up to the price, and users churn to a lower tier.
Best case you unlock a new customer demo that’s much higher LTV.
Tinder has officially launched a $499 monthly plan, which allows subscribers to message people they have not matched with and increase their visibility to the “most sought-after users.”
👋 AI builders - our team
@a16z
is hosting an event at NY Tech Week in October!
We're bringing together a curated group of founders + operators, and would love to meet you.
How to RSVP 👇
In this week's Launched, I explored the early days of Discord.
A single post on the Final Fantasy XIV subreddit attracted the first 600 users.
But how did this balloon into 3M users in Discord's first six months? ⬇️
I built an AI tool for anyone who wants to be a better friend ✋
With ZERO manual intervention, it will detect who has a birthday coming up, find a flower shop local to them, and order / deliver a gift - right on time!
Here's how 👇
Bytedance has a new app that just hit
#1
on the U.S. Lifestyle charts (and top 10 overall)!
It's called Lemon8 - and is being described as a TikTok x Instagram x Pinterest hybrid.
Per
@SensorTower
, the app is seeing ~60k daily downloads. Here's what it is ⬇️
Another potential success path here (and where I think startups can play):
Platforms that give people an "excuse" to gather, either IRL or digitally. This could be a sports game, fan community, or a party (ex.
@partiful
👀)
If you're working on something here, reach out! 👋
Big marketplace news - P2P fashion co Poshmark is being acquired by Naver for $1.6B...
...which is the exact same price Etsy paid for competitor Depop 15 months ago! (but at a very different multiple)
Here's how the two stack up ⬇️
New DoorDash feature - Dine Out 🌮
Users get app credits for checking in for an IRL meal using the DoorDash app
It’s limited to one per day, but the credits are pretty serious! ($20)
Fitness influencer Kayla Itsines just sold her company SWEAT for $400M!
This may be the largest ever exit for an influencer-led app. But it had humble beginnings - Kayla's personal training biz in her parents' yard.
How did it scale to 2M MAUs and $100M in annual revenue? ⬇️
It's time for a new era of prosumer software!
GenAI-native workflows will give users leverage on their time and skills, making the experience of getting work done much more magical 🪄
Here's what
@illscience
,
@venturetwins
and I are looking for 👇
Will your marketplace soar or sputter out?
It may depend on one critical metric that many startups ignore.
Here's how to figure out if you have a "layer cake" or a "leaky bucket" ⬇️
Announcing...this year's "top consumer apps"!
These are the products that claimed the coveted
#1
spot in the U.S. for at least a day.
2023 saw a major shakeup - only 15 apps made the list, down from 37 in 2022.
Here's what this says about the state of consumer apps 👇
Underrated stat on
@cutiecaryn
’s new “AI girlfriend” voice bot:
The $72k in revenue came from just 1,000 beta testers in a week.
This means the average user spent more than an hour chatting with her, at $1/min.
I paid to see how it works 👇
Overall - Twitter has built a unique social graph and interest graph that's hard to replace.
Even with a copycat product, the underlying networks and user identities developed over a decade are tough to replicate.
I'm sure Meta will keep trying - but for now, I'm skeptical 🤔
It was March 26, 2012, and Brian Armstrong was desperate.
YC apps were due in 3 days. Despite some close calls, he had no co-founder for his "PayPal for BTC" idea.
5 months later, Brian was still solo. But he did have a product, growing at 20%...per day!
How did he do it?🧵
As the Netflix password sharing debacle shows, it’s tough to ask people to pay for things that were once free.
Moving free features behind a paywall creates resentment from existing users, which hurts retention and WoM growth.
And you’ll likely be flooded with bad reviews 😬
If your conversion is <3% but you have a strong free user base, your paid product might need a boost.
Ideas for paywalled features:
- Full content library (
@calm
)
- Custom recs (
@Grammarly
)
- Extra analytics (
@strava
)
- Badges, avatars (
@discord
)
- Unlimited “tries” (
@duolingo
)
First, there's perceived stigma/adverse selection. If you need an app to make friends, is that a negative signal?
Dating apps overcame this as they provide data points/filters that are hard to get IRL (e.g. who is single)
As adoption spiked, the behavior was further normalized.
It was the year of near-daily AI launches...
But what products and trends hit the mainstream, with "real people" as users?
A recap of consumer AI in 2023, by the numbers 👇
3️⃣ IG users joining the new app may not know how to create great text content. If you post once and it flops, you might not try again.
4️⃣ The flood of celebs/brands that joined is a double-edged sword. The app quickly felt overrun by blue checks, which is intimidating!
Rule of thumb for consumer companies:
The more notifications, texts, and emails you have to send to re-engage users, the further you are from product-market fit.
One of the most remarkable things about consumer AI is that it immediately shifted us from:
Build a base of millions of users, monetize later ➡️
Monetize from user one and day one
I frequently meet cos that have bootstrapped to $1-$2M ARR, which was very rare pre-AI!
First of all - it's a massive accomplishment to get to 100M active users in just a few days.
It makes the new app technically the fastest growing consumer product of all time.
(Though heavy credit has to be given to IG, which nudged users to download it!)
Retention curves that "smile" are always great, right?
Not when they're masking cohort degradation.
Here's what to watch out for when analyzing your cohorts ⬇️
Similar to Spotify, TikTok Music has curated playlists - with a heavy emphasis on what’s trending on TikTok.
But unlike Spotify, you can stream user-generated remixes that have gone viral, instead of having to hunt them down on SoundCloud.
For marketplaces, one of the biggest predictors of demand-side retention is...quality of supply!
Which suppliers you recommend can be the difference between an OK and a fantastic experience.
Here's how the biggest marketplaces rank supply in search results 👇
Big day! After 4 years of writing Accelerated, I'm excited to announce the next phase of my journey.
Introducing my new newsletter - Launched! 🥳
In a world of rising CACs and divided attention, how can consumer startups break through the noise?
We may have reached peak “pets as kids”…
Jolly Dog, an iPad game for dogs, has cracked the App Store top 100
The app is getting 70k downloads / day (and climbing!) 🤯
New AI feature from DoorDash for Grocery orders 🪄
Type or copy over your items (in natural language), and it creates a page of options for every item that you can one-click select!
These lists are savable and "live" on the vendor page for easy re-orders
There’s a lot of “save my parents’s business” content from Gen Z on TikTok - but this is next level
192k followers and 10M views from two videos for an IRL light shop ⬇️
If you’re a consumer founder, try to “build towards” a daily active use case.
There are very few massive consumer cos without a significant portion of users as DAUs.
This isn’t just true for social or subscription - but marketplaces, prosumer, etc.
What about making IRL friends?
Dating apps that have tried to add friendship as a mode (ex. Bumble BFF, Tinder Social) have largely failed.
This is partially because users in relationships feel weird (or their partners feel weird!) about using what is primarily a dating app.
Fascinating to see what Canva has done with their acquisition of from 2021.
I'm guessing it powers in-platform background removal...
But they've also let the site (w/ 60M monthly visits 🤯) run standalone, with a button to take every design to Canva.
Fun weekend project - use AI to generate a comic of you, your kids, or your friends!
And yes, this includes custom (and consistent) characters 🪄
How I did it using
@dashstudioai
⬇️
Looks like Temu spending $14M on two Super Bowl ads barely made a dent on user acquisition...
Below is downloads per day for the last month, with Sunday down slightly from Saturday 🤔