INSIDEHOOK – Dating apps operate with different business models that could significantly impact user experiences. While apps like Hinge market themselves as platforms designed to find lasting connections, others like Tinder and Bumble have focused on optimizing user engagement. Apps like Thursday have sought to limit user interaction to reduce the gamification effect. Despite the surface altruism, these businesses are driven by a profit motive, focusing on user retention and regular engagement to maintain an active user base. This has sparked speculation about whether these apps, incentivized to keep users active, could unintentionally prolong the quest for meaningful connections. Each app caters to a unique demographic and promotes a distinct user experience, potentially affecting the user's dating life.
Category: Bumble
Bumble Must Face Privacy Lawsuit Over User Verification Tool
BLOOMBERG LAW – Bumble lost a bid to beat a privacy lawsuit pending in Chicago over a facial recognition tool that uses photos to check the identities of the dating app’s users. The potential class action alleges violation of a state law in Illinois, the Biometric Information Privacy Act. The law, known as BIPA, threatens large fines against companies that breach its provisions protecting the privacy of data such as face scans or fingerprints. Bumble had argued that the case should be dismissed due to a lack of connection with Illinois. A federal judge rejected that argument.
Bumble Launches New Kindness Campaign With Actor Adam DiMarco
Online Dating Stocks: Wall Street Bullish Despite Slump
BUSINESS INSIDER – Wall Street analysts predict a resurgence in online dating apps despite their poor stock performance since 2021. Match Group and Bumble have seen a significant decline in their stock value (Match Group has shed 75% of its value since hitting a record share price of $169.53, Bumble has tumbled 77% from its IPO of $75.46), but analysts remain optimistic due to strong growth prospects and the sustained popularity of online dating. Bank of America analyst Nat Schindler cited that these stocks are undervalued relative to their cash flow and foresees significant potential for growth. He also believes that online dating, being a primary means for new couples to meet, won't face a recession even if the economy does, as it meets a basic human need for connection. Sam Yagan, the co-founder of OkCupid and former CEO of Match, said that the years following the 2008 recession were actually OkCupid's best years. However, investors remain cautious, particularly due to concerns about the broader economic climate and the impact of the Federal Reserve raising interest rates. Meanwhile, dating apps are making strategic changes, such as short-term subscriptions and brand revamps, to attract users and prepare for economic challenges. Analysts suggest that investors are taking a "wait and see" approach.
by Jennifer Sor
See full article at Business Insider
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Making Friends on Apps Doesn’t Need to Be Weird
WASHINGTON POST – Lonely American adults, especially the younger generation, are increasingly turning to apps to make friends, overcoming the stigma associated with seeking platonic relationships online. Platforms such as Discord, Reddit, Bumble, and Meetup have become hubs for individuals seeking companionship. While online dating has been normalized, actively seeking friends online is still considered somewhat taboo. Some participants noted that making friends as an adult requires effort, vulnerability, and a willingness to face social fears.
Bumble BFF Will Be a Standalone App
MASHABLE – BFF and Bizz have historically been available on the same app as Bumble Date, but according to a source, that's going to change. Bumble has been testing a standalone version of the BFF app in the UK and select Asian markets. The standalone app is expected to launch in the U.S. this summer. BFF represents 15% of the app's monthly active users.
Bumble’s Campaign for Safer, Women-led Online Dating
Americans to Spend $2.5B on Dating Apps in 2023
Bumble Inc: the Rising Star of the Online Dating Industry
BEST STOCKS – Bumble has gained attention from investors and analysts as it emerges as a rising star in the industry. With its moderate buy rating from a consensus among brokerages and a solid user base of ~40M users across its apps, Bumble and Badoo, the company is strategically incorporating subscription and in-app purchases to increase its revenue streams. Despite recent earnings per share of ($0.01) and a negative net margin attributed to expansion costs, Bumble's revenue has seen a YOY increase. Analysts have positive expectations for the company, projecting earnings per share of approximately $0.23 by the end of the year. With its innovative products and market strategy, Bumble has the potential for significant growth in the online dating industry, making it an attractive prospect for investors.
28% of Consumers Look for Love on Dating Apps in Early 2023
