A top investor at Andreessen Horowitz shares why she believes consumer tech companies will have to revamp how they do business in 2020

• Connie Chan, a general partner at Andreessen Horowitz who is focused on consumer tech, recently shared the four trends she's watching in 2020 at the firm's annual summit.
• The investor believes consumer tech companies will find new ways to squeeze money out of their users.
• Her predictions are: apps become "super apps," super-charged by commerce; technology continues to mold the physical world; and a new crop of startups create products for voice-controlled devices.
• Andreessen Horowitz shared the slide deck that Chan used to defend her predictions at the summit.
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Your phone is full of apps. But when was the last time you downloaded one?

Most smartphone users download zero apps a month, though the app stores are overflowing with new ones, according to research by Comscore. The situation is creating havoc for consumer tech companies, some of whom rely on adding new app users and keeping existing ones to grow their businesses.

So app makers are finding new ways to squeeze money out of their users, said Connie Chan, a general partner at Andreessen Horowitz, who is focused on consumer tech. Uber delivers food. Spotify added podcasts. Yelp takes reservations.

Chan - who previously led Andreessen Horowitz's initiative to invest further in Asia, a ground zero for consumer trends like the "super app" and facial recognition technology - gave a presentation at the firm's annual summit in late 2019, outlining the four trends she's watching in the new year.

Here are Chan's predictions for the future of consumer tech.

The super app has arrived

Americans spent more time using their phones than watching television last year for the first time ever, according to research by eMarketer. The switch has led some app companies to supersize their apps - introducing new features or partnerships that create revenue - so they can squeeze more money from their existing users, according to Chan.

She gave the example of a food delivery service in China called Meituan. Since 2013, it's added features to book a hotel, buy movie tickets, find local attractions, arrange transport, and more, making it China's "everything app" for a range of high-margin products and services.

"They are taking a high-frequency, low-margin business of food delivery and tacking on low-frequency, high-margin businesses at low or zero customer acquisition costs," Chan told the audience at the summit event. (You can watch a video of Chan's talk here.)

The tech investor said she expects more app companies to create new revenue streams like Meituan has achieved.

Everything becomes commerce

The shopping cart button is coming to every video app, messaging app, and social media app on your phone, Chan predicts. They are the "perfect distribution vehicle" for commercials, especially as people turn their attention from their televisions to their phones.

Technology beyond your fingertips

Chan predicts that consumer technology shows up more and more in the physical world, and she sees this transformation already taking place in China. Some of the country's airports use facial recognition to identify fliers and direct them to their gate. There are classrooms that use this tech to take attendance.

"The way that we interact with the internet will no longer be just on these small little screens," Chan said on stage, "but will be connecting our digital identities with our physical ones."

The explosion of audio

The rise of mobile devices a decade ago spurred a generation of startups that were mobile-first, designing their products for smartphone users instead of desktop users. Now the same is happening for voice, according to Chan.

A new crop of startups are creating apps for voice-controlled devices, like smart speakers, displays, vacuums, and thermostats. Better hardware and creation tools have made it possible for anyone to "create their own podcast series from their bedrooms," Chan said.

Another reason for the explosion of audio is that the medium doesn't require a user's full attention. She can listen to a podcast while cooking breakfast, nursing, or driving around.

"People now have wireless earbuds that help you listen to podcasts on the go," Chan said. "You have your connected cars. You have smart speakers at home."

Connie Chan shared the four consumer tech trends she's watching at Andreessen Horowitz's annual summit in 2019. Here are the slides she used to defend her predictions.