Industry

Singles are gravitating towards more targeted dating apps and moving away from the one-size-fits-all platforms like Tinder and Bumble.

According to an article in The Financial Times, specialty apps like Grindr (which serves gay and bisexual men) and Feeld (which serves those looking for non-traditional relationships), are seeing downloads and new users increase. Investors are noticing and are looking to these apps rather than the one-size-fits-all dating apps dominating the market.

Tinder and Bumble have seen a decline in downloads and paying users, which has rattled investors. According to the FT, Match Group which owns Tinder has shed about a fifth of its market value since the beginning of 2023, compared to Grindr whose shares have more than doubled in the same time period.

Starboard Value has taken a stake in Match Group, the latest firm to join the company’s activist investors and criticize executives for its financial performance.

According to The Dallas Morning News, Starboard has built a 6.6 percent interest in Match Group, the parent company of dating app Tinder. The popular dating app has seen a drop in paying customers for six straight quarters, with little sign that things will turn around soon.

Starboard joins Elliott Investment Management LP and Anson Funds Management LP, two other activist investors who have demanded changes in Match Group’s operations. Starboard is planning to push for selling Match Group if it fails to turn things around, according to Dallas Morning News.

Hinge and Grindr are two standout dating apps as they continue to grow in a tough market; powerhouses Tinder and Bumble are seeing more users leave their platforms.

In general, dating apps have had a rough couple of years, with the coveted Gen Z market looking to other options besides dating apps to meet singles, including in-person events, running clubs, and social media platforms like LinkedIn.

“Online dating trends have continued to decelerate industry-wide, showing minimal relief from the recent struggles,” wrote Morgan Stanley analysts Nathan Feather and Brian Nowak in their research, according to Quartz.

A majority of dating platforms have signed on to a new dating safety code in Australia, in an effort to crack down on dating app users who violate policies.

According to News.com, dating app users who “harass, threaten, or share unwanted explicit photos” could have their accounts terminated across multiple platforms at the same time, intended to create a safer space overall for online dating. Seventy-five percent of companies operating in Australia have signed on to the new industry standard, including Match Group (which operates Tinder, Hinge and OkCupid among others), Bumble and Grindr.

A recurring problem with dating apps is user safety, specifically surrounding the growing number of users who receive unsolicited images. If a perpetrator is banned from one platform, they can easily move on to other platforms, so the new safety standard is intended to prevent this from happening.

A new study from Eventbrite says that young people are turning away from dating apps to meet at in-person gatherings.

According to Axios, the study showed a 42 percent increase in people signing up for in-person dating events, like speed dating, between 2022 and 2023. From May 2023 to April 2024, Eventbrite also saw more than 1.5 million searches for dating and singles events on its platform.

"This ongoing trend speaks to a broader societal shift where people are craving genuine connections and meaningful experiences tailored to their interests," Eventbrite said in the report, which was released in early June. 

Dating app Tinder has partnered with running coach app Runna to launch a special summer run club for singles.

According to Runner’s World magazine, the “Solemates” club was created in response to a growing need from Tinder app users for activity-based dating events. There is also a significant number of runners joining Tinder, and the term “running” is one of the top trending profile-tagged “interests” that people can choose from on the platform.

SoleMates events are taking place in June and July in London, and will be held on Wednesday nights for three consecutive weeks at different areas, including Clapham and Central London. The third location is to be determined.