THE TIMES – Dating apps face challenges after years of growth, with declining user numbers and management changes. Match Group's value dropped from over $40B in 2021 to $7.8B. The number of paying customers is declining by 9% in its sixth consecutive quarter. At Bumble, Lidiane Jones replaced Whitney Wolfe Herd as CEO in January. She has already laid off 350 employees. Shares in Bumble have fallen by ~30% over the past 12 months and the company is now worth $2B, down from the $13B shortly after the 2021 IPO. Mark Brooks, the CEO of Courtland Brooks, a business that provides consultancy services to online dating companies, said that a proportion of users were willing to pay a premium for dating apps. "They're leaving a lot of money on the table," he said. "There's a small portion of people who are willing to pay considerably more. Some people don’t have time, they just want dates, so the more you can help them with that, they'll pay disproportionate amounts and spend $500 a month, perhaps, which is what Tinder is playing with right now." Acquisitions also have a role to play in helping Match to grow. Hinge, bought by the group in 2018, has been an important investment. It describes itself as the app that is "designed to be deleted". Brooks said: "Theoretically they wouldn't want users to delete the apps because they're not going to get paid any more, but they’re conveying that it's the app for a high-quality experience. Hinge is important to Match. It offsets some of the decline in user weakness for Tinder. But it is still small relative to the size of the group." Others in the industry are also hoping to shake up the market. One such is Thursday. Founded by Matt McNeill Love and George Rawlings, the dating app, as its name suggests, works only on Thursdays, when it hosts singles events in various locations in cities such as London and New York.
by Emma Taggart
See full article at The Times
See the top news on Match Group See the top news on Tinder
See the top news on Bumble See the top news on Hinge
See the top news on Thursday
WALL STREET JURNAL – Match Group CEO Bernard Kim, known as "GamerBK" on social media, has a background in mobile gaming and is now leading Match Group. Kim aims to convince users that paying for premium experiences on dating apps is worthwhile. Despite a challenging environment with complaints about scams and user dissatisfaction, activist investors are pushing for change, including innovation at Tinder. Kim's creativity and gaming experience are seen as assets. He previously helped turn around Zynga and has introduced weekly subscriptions and a $500-a-month plan on Tinder. Under his leadership, Match Group launched the gay dating app Archer and aims to improve Tinder through product innovation and cost cuts. Kim defends the effectiveness of dating apps and is focused on growing Tinder and expanding Hinge.
