What's Happening?
TikTok's newly formed U.S. entity is experiencing significant challenges, including technical issues affecting its recommendation algorithm and view counts. These problems have led to a 150% increase in uninstalls of the app in the United States over the past three months, according to data from analytics firm Sensor Tower. Despite these issues, TikTok's daily active users in the U.S. have seen a slight increase of about 2%. The company attributes the technical difficulties to a power outage at a data center, which has caused multiple bugs. Meanwhile, an independent app called UpScrolled has gained popularity, with a surge in downloads following TikTok's troubles. UpScrolled, which offers a platform for sharing photos and short-form videos,
has seen its downloads increase significantly, becoming one of the most downloaded apps in the U.S. App Store.
Why It's Important?
The technical issues and user dissatisfaction with TikTok highlight the challenges the platform faces in maintaining its user base amid operational disruptions. The rise of UpScrolled as a competitor underscores the potential for smaller, independent apps to capture market share when established platforms falter. This situation reflects broader concerns about the stability and reliability of social media platforms, particularly those undergoing significant ownership or operational changes. For TikTok, resolving these issues is crucial to retaining user trust and engagement, while for competitors like UpScrolled, this presents an opportunity to establish a foothold in the market.
What's Next?
TikTok has not provided a timeline for resolving the technical issues, leaving users uncertain about when the app will return to normal functionality. The company will need to address these problems promptly to prevent further user attrition. Meanwhile, UpScrolled may continue to capitalize on TikTok's challenges by enhancing its platform and attracting more users. The situation also raises questions about the long-term viability of TikTok's new U.S. entity and its ability to compete effectively in the social media landscape.
