Recently Google brought up a new feature app bundle which is a pretty similar concept to APK except its flexibility and architectural differences.
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App Bundles are a publishing format, whereas APK (Android application PacKage) is the packaging format which eventually will be installed on device.
App Bundles use bundletool to create a set of APK. (.apks) This can be extracted and the base and configuration splits as well as potential dynamic feature modules can be deployed to a device.
The dependencies can look something like this:

The contents of an App Bundle look kind of like this:

More information on App Bundles is available here.
Following are benefits of Android App Bundle over APK on PlayStore: