BLOOMBERG – The US District Court for the Northern District of Illinois did not accept Bumble's plea to dismiss a class-action lawsuit over supposed violations of biometric privacy related to a verification feature in its dating app, Badoo. The court stated that further jurisdictional discovery is needed to clarify whether Bumble and its two subsidiaries, Buzz Holdings L.P. and Bumble Trading LLC, are subject to the court's jurisdiction due to uncertainties in Bumble's involvement with its subsidiaries. Kemelle Howell, a Badoo user since 2016, initiated the lawsuit in 2021, alleging that the companies violated the Illinois Biometric Information Privacy Act through its verification tool.
Category: Bumble
JPMorgan Analyst Recommends Investing in Match Group, Citing Tinder’s Growth
BLOOMBERG – JPMorgan analyst Cory Carpenter advises investors to invest in Match Group, anticipating that its Tinder app will see double-digit growth in the upcoming quarter. Carpenter upgraded his price target for Match from $55 to $60, despite negative investor sentiment, and dubbed it his "top pick" over competitor Bumble. He argues that concerns about market saturation in online dating are exaggerated and predicts a 10% compound annual growth rate for the industry through 2026. While Bumble's shares have declined, Match has gained ~3% in 2023.
by Joel Leon
See full article at Bloomberg
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Bumble’s Stock Structure Upheld by Delaware Judge (Correct)
BLOOMBERG LAW – A judge in Delaware has ruled that Bumble's special stock structure is legal, dismissing a lawsuit from an investor who claimed it was unfair. The company's rules give 10 votes per share to its founder, Whitney Wolfe Herd, and its early supporter, Blackstone Inc., while all other shareholders get just one vote per share. The judge said this setup is allowed under Delaware law, which is where Bumble is registered. This means the company can continue to operate with its current voting structure.
Podcast: Dating Apps Pivot to Premium Pricing
MARKETPLACE – Major dating apps like Tinder and Bumble are introducing premium subscription services, with Tinder's costing up to $500 per month. These apps are also offering lower-cost options to attract more subscribers. Mark Brooks, a dating app consultant, explained, "When you pay, you're going to do less work and find more dates." He also mentioned that the early days of dating apps were all free, driven by venture capital and a land grab mentality. This shift in pricing strategies reflects a broader trend in the internet service economy. Dating apps are now focusing on optimizing existing user bases instead of just adding new users.
Bumble CEO Predicts AI Dating Coach Will Teach You How to Flirt
BLOOMBERG – Whitney Wolfe Herd, the CEO of Bumble, envisions using artificial intelligence (AI) to enhance dating and relationships. She believes that AI can help singles become better at courtship by boosting their confidence and providing guidance on flirting. With loneliness becoming a prevalent issue and dating app fatigue on the rise, Wolfe Herd sees technology as a solution to improve the quality of matches and connect people not only romantically but also platonically.
Bumble Changes Its Policy to Crack Down on Bots, Ghosting, and Doxing
TECH CRUNCH – Bumble is implementing updated community guidelines to combat issues like bots, spam, ghosting, and doxing on its dating apps, including Badoo. The new rules include a ban on artificial actions to influence engagement, the prohibition of adult content, and counting "no-shows" as "bullying and abusive conduct." Bumble is also addressing doxing and victim-blaming as rule-breaking offenses. The company has previously used AI to detect fake and spam accounts, and it's committed to improving platform safety. However, it hasn't detailed changes to reporting options or handling off-platform violations.
Dating Apps Put a Hefty Price Tag on Finding Love
Match which will roll out a superpremium tier on Tinder in the fall. "If you actually take a small fraction of our payers at higher price points, you actually get a number that's in the tens of millions of dollars on an annual basis," CEO Bernard Kim said.
Bumble CEO Whitney Wolfe Herd sees premium services delivering new opportunities. "We see that there's a lot of runway to expand there."
Even if uptake is slow, there is precedent behind the move to raise prices. Mark Brooks, CEO of Courtland Brooks, which helps online dating companies grow, said that other brands, such as eHarmony and Tawkify, have for years priced their premium services above what Tinder, Hinge and Bumble charged. The stakes are high in showing users that paying is worth it, Brooks said. Otherwise, they could defect to competing platforms. "They've got to actually really deliver on it, because they'll get crucified if they don't," said Brooks.
Men Are Still Suing Bumble for ‘Discrimination’
THE DEEP DIVE – Bumble is being sued (again) for discrimination. The case, brought by Zimmerman Reed, alleges that Bumble's policy of requiring only women to make the first move on the app discriminates against men, transgender men, or nonbinary people. The law firm claims that the app is in violation of California's Civil Rights Act, which prohibits businesses from arbitrarily treating people differently based on their sex, gender, or sexual orientation. This isn't the first time that Bumble has been accused of discrimination. In 2022, the company settled a California-based discrimination lawsuit for $3M, without admitting any wrongdoing.
by JP Alegre
See full article at The Deep Dive
Bumble Adds New Features for Better Dating Experience
Business Dynamics in the Digital Dating Landscape
FINANCIAL TIMES – The digital dating industry, spearheaded by platforms like Tinder, is significant with Match having a market cap of around $13bn. However, platforms face a unique challenge: successful match-making could reduce their user base. Tinder's paying users are declining, while Bumble is expanding, though more users don't necessarily mean more profit. Generational preferences pose another issue; Gen Z is reluctant to use apps popular with older generations. Bumble's strategy involves diversifying its services, from friendship (BFF) to post-dating interactions (Official). These efforts aim to enhance user retention and monetization, which are critical for sustained growth.
by Louis Ashworth
See full article at Financial Times
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