Zapier putting apps out of business

If you were to launch a form builder startup, how would you stand out?

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You could slap AI on whatever you build. But who’s to say big players like Typeform or Google Forms won’t either?

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Most people would say you’d have to differentiate by niching down. Maybe a form builder specifically for restaurants?

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But there’s another way to stand out that most people don’t talk about because it’s SUPER SPICY.

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Here’s what you do:

• Provide actual value to all the form apps (become their best friend)
• Have them all point to you (because you’re their bestie and you are so helpful to their users)
• Compete with them

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… wait, what? 

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Yeah. Compete with them.

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This is what Zapier is doing and it might put form apps (and other apps) out of business.

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Let’s break it down.

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The value of an integration

ChatGPT just told me that “according to Crunchbase, over 10,000 global startups secured seed-stage funding in 2020.” 

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The point: humans might create more software than they procreate humans.

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The actual point: there’s a boatload of new apps that come out every year. Making sure they all talk to each other is pretty vital for our sanity.

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The proof that the value of integrations has increased is quite literally the success of Zapier over the last decade. 

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So now that Zapier has completely dominated the integrations (and automations) game, they’ve decided they can give everybody more value by stepping into the light.

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This looks like new products (Tables, Interfaces, etc.)

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But an Interface form is pretty weak compared to Typeform. Right?

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Maybe.

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Features vs integrations

Features can be built relatively easily but integrations are extremely complicated.

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If you launch your YAFA (yet another form app) startup and feature match Typeform, you still won’t succeed because everyone on Typeform won’t want to switch because there is a switching cost. Not to mention brand trust and other brand-related things that keep people using an app.

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If you were to try to win against Typeform by focusing on integrations and automation, you'd still never be able to catch up to Zapier. The whole reason why Zapier exists is because integrations are hard to build and maintain. Zapier has cracked the code there. 

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But if Zapier were to get into the form business…

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Who Zapier Will Replace

Yes, Zapier has entered the form business (and many other businesses, too). But how will it jump the switching cost hurdle for users?

Here's how. As Interfaces’ features begin to catch up, the value you get from simplifying your tech stack will outweigh the switching cost.

Assuming a must-have feature match between Typeform and Zapier’s Interfaces, a Typeform user will be faced with two automation choices that look something like this for capture leads:

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1. Stay with Typeform. Typeform -> Zapier -> Google Sheets -> CRM
2. Move to Zapier Interfaces. Zapier -> CRM

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The future is simplicity. Simplicity looks like automation-centered building.

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Initially, Zapier will replace the apps that typically serve as a pitstop in a process. Said another way, Zapier will replace apps that are reliant on integrations. Think forms, lists, data capture, landing pages. 

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It won’t look like Zapier replacing Hubspot. 

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Not yet, at least. 

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To recap:

• Zapier’s blueprint: make friends, have them point users to you, compete with them.
• The value of integrations will only continue to increase over time.
• Zapier will replace apps that are reliant on integrations because people will favor simplicity.

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That’s all for this week!

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Happy Building,

Bryce