Finances

Tinder announced its new exclusive VIP service Tinder Select, which will cost members almost $500 per month (which works out to $6,000 per year!).

The new service will give top-tier members access to new features like a “VIP search, matching and conversation,” according to Bloomberg, none of which are currently available in Tinder’s existing paid subscription plans. Tinder did not reveal any details about the features.

The new service might have some similarities to exclusive dating app The League, which Tinder’s parent company Match Group acquired last year. There’s a market for exclusivity on dating apps, and the company is betting that offering a premium service will work for Tinder, too.

Tinder has been testing the VIP service, but now it’s an official subscription tier, at least for those invited to join. The new service was only offered to less than 1 percent of the most active Tinder users, according to Bloomberg News.

Nearly half of Grindr employees quit the company after they were given an ultimatum to return to work in the office.

Company executives announced the new workplace policy on an all-employee call in early August, and gave employees two weeks to decide whether they would agree to work in the office or hand in their resignation. Executives demanded employees relocate to one of the Grindr offices in Los Angeles, San Francisco, New York, Chicago, or Washington D.C.

According to CNN, 80 of Grindr’s 178 workers who had turned down the in-office mandate were forced to quit by the end of August. Most of these employees were remote workers, and many said that this would put an undue burden on them, including finding housing and schools for their children to attend in a new city.

Employees have also been vocal about Grindr executives using the new policy as a retaliatory tactic against employees, who only weeks before voted to organize a union, demanding fair wages and equal treatment for all employees. Grindr employees worked in partnership with the CWA (Communication Workers of America) to initiate.

Popular dating apps like Tinder, Bumble, Hinge and Grindr are trying new subscription pricing to continue to grow revenue, including premium pricing as well as discounts and short-term subscriptions for young Gen Z daters.

Dating app revenue has stalled in recent quarters, and to increase revenue and paying subscribers these companies are looking at out-of-the-box pricing. Match Group is especially motivated, as it has seen revenue drop the past few months while Bumble and Grindr are still seeing gains. Many are starting to offer premium services to highly motivated and more affluent daters, who are willing to spend $500 a month on a dating app if it means better, more curated matches.

On the other end of the spectrum, these same apps want to attract younger daters, specifically the Gen Z market. Match Group is starting to offer short-term weekly subscriptions for those singles who don’t want to commit, as well as discounted pricing to encourage young daters to pay for subscriptions, instead of just opting for the free service and paying for certain in-app features as needed.

Dating app Hinge is looking for a new head of AI, and is willing to pay almost $400K to the right person who will lead the team.

AI has become increasingly important to dating apps, and Match Group CEO Bernard Kim is capitalizing on the versatile technology to expand product offerings, especially for star app Tinder. Now, he’s focusing efforts on AI for its fastest-growing dating app, Hinge.

According to Business Insider, the new position was created to confirm Hinge as an “AI-first company.” The VP of Artificial Intelligence will lead a team of data scientists and machine learning engineers “to create and deploy AI features across the app,” as reported by Business Insider. The new hire will be based in New York, and report to Ben Celebicic, Hinge’s Chief Technology Officer.

Grindr has issued a return-to-the-office policy for all workers, forcing them to relocate to one of the company’s three main offices by October 3rd or lose their jobs. Employees say this is a retaliatory move, since it comes two weeks after they announced their plan to form a union.

According to Vice, who obtained the certification form that was sent to workers, the policy states that employees must move to within 50 miles of their newly designated office or they will lose their jobs.

Workers were given the choice to move to either Chicago (for the engineering team), and Los Angeles or San Francisco (for the product and design teams), and if they were not willing to relocate, their jobs would end August 31st. Workers were offered six months’ severance pay and healthcare benefits if they lost their jobs, according to the memo issued by the company.

Shares of Bumble fell 4 percent in early August after the company shared its relatively “lackluster” third-quarter revenue forecast, coupled with a sharper rise in its operating expenses, according to Reuters.

This rise in spending concerned investors, especially after Tinder’s parent company Match Group recently predicted that its third quarter revenue would be higher than analyst expectations, despite its own spend on development and marketing. The company has struggled lately with Tinder, and has been implementing new features to increase in-app revenue and expand its userbase. The company also recently announced it will be launching a high-end service for users who are willing to pay as much as $500 per month.

Bumble meanwhile shared that its operating expenses had jumped 7 percent in the second quarter with additional spend on product development and marketing.