You might think launching a mobile app for your marketplace is a no-brainer. After all, the biggest platforms—Uber, Airbnb, and Amazon—have mobile apps, right? But here’s the harsh truth: building an app too early is one of the worst decisions you can make.

Why? Because No One Downloads Unknown Apps

Your marketplace is not Uber, Amazon, or Airbnb—at least, not yet. Those companies already have brand recognition and a massive user base. You, on the other hand, are still fighting for attention.

Here’s the reality:

• The average smartphone user downloads 0 new apps per month (Comscore).
• Unless your marketplace is a daily-use platform, users won’t keep your app installed.
• Getting people to download an app requires insane customer acquisition costs (CAC)—which most early-stage startups can’t afford.

The Real Cost of Building and Maintaining an App

Even if you somehow convince people to download your app, the costs will crush you. Here’s what you’re looking at:

1. Development Costs Are High

• A basic marketplace app can cost $50,000–$150,000+ to develop.
• If you need both iOS and Android, double your costs.
• You’ll also need ongoing updates, bug fixes, and security patches, which require a dedicated development team.

2. User Acquisition Costs Will Skyrocket

• If your website gets visitors from SEO, referrals, or social media, great! But now, you need to convince users to download an app.
• The average cost per app install (CPI) is $1–$5—but an install doesn’t mean an active user.
• Many marketplaces see 90%+ app churn after the first 30 days.

3. App Store Algorithms Work Against You

• Your app won’t just “go viral.”
• Ranking in the App Store is way harder than ranking a website on Google.
• If no one downloads your app, it dies.

Why a Web-Based Marketplace is the Smarter Move

Instead of wasting money on an app no one downloads, focus on building a great web experience first.

• Web apps work on all devices (mobile and desktop) without extra installs.
• SEO brings free traffic—unlike app stores, where you get buried.
• User acquisition is easier—one click on a link is all it takes.
• Development costs are lower, and you can iterate faster.

When Does an App Make Sense?

Building a mobile app can work—but only if:

• Your marketplace has daily active users (think ride-sharing, food delivery, or messaging-heavy apps).
• You already have thousands of users and they’re demanding an app.
• You have the funding to support app development without sacrificing growth.

The Bottom Line: Don’t Build an App Too Early

Unless your marketplace has proven demand, strong retention, and daily active users, a mobile app is a waste of money and time. Focus on growing your marketplace organically with a killer web experience first.

Once you’re at scale? Then, and only then, should you consider an app.