Industry

The share price of Match Group Inc. dropped after a disappointing third quarter earnings report, signaling that consumer interest in paying for dating app subscriptions continues to wane.

According to Business Insider, Match Group shares dropped more than 18 percent after the company reported that paying users on its most popular app Tinder fell 4 percent in the third quarter from the same time period last year, to $9.9 million. The revenue decline for Tinder has been continuous the past few quarters, and Match Group says it expects this slowdown to continue in the fourth quarter.

Hinge continues to be the star of Match Group’s offerings, growing 36 percent year-over-year, though its userbase is still a fraction of Tinder’s.

Young singles in India are turning to new and unexpected platforms to expand their networks, including LinkedIn for dating and Bumble for finding a job.

According to India Today, a recent survey from DatingNews.com found that 61 percent of respondents aged 35 to 40 said they have found their dates on LinkedIn. And 52 percent aged 20 to 40 said they looked to apps like LinkedIn to find dates.

Traditionally, LinkedIn has been a networking platform for careers, but lately people have been turning away from dating apps and gravitating to other social platforms, and especially to LinkedIn. At first, this trend was being reported in the US, but now it seems to be global.

Cheers, a new matchmaking app founded by former Instagram engineer Sahil Ahuja, has launched in New York.

The new app is focused on building connections by offering a similar format to social platforms like Instagram, where users can add unlimited photos and videos to their profile (similar to social media apps), so other users get a feel for who they are. Cheers uses AI in some of its features as do most dating apps now, including for photo selection and to set up user profiles.

According to Tech Crunch, Cheers is differentiating itself from apps like Tinder and Bumble by offering posting features and friend-matchmaking in addition to romantic connections, leaning heavily into the social media model.

Gay dating app Grindr has been hinting at its development of an AI wingman, but now the company is officially testing an initial model, according to The Wall Street Journal.

The WSJ interview with CEO George Arison included more details on the AI wingman, which will keep track of a user’s matches and make conversational suggestions based on messages they have had with other users. The AI bot will even recommend matches with long-term relationship potential and suggest places where they could meet.

According to Arison, down the line, the AI wingmen of Grindr users will be able to chat with each other so they can offer a “robust view” of a match before the user decides to meet in person. “Bot-to-bot conversation not only saves the humans time, it might also spot dating deal-breakers early on,” he told WSJ.

Match Group CFO Steven Bailey

Image: Match Group

Match Group has promoted Steven Bailey to the position of CFO, taking over for Gary Swidler as he continues in his role as president of the company.

Bailey is currently senior vice president of financial planning and business operations at Match Group, according to Reuters, and will assume his new position on March 31st. According to Reuters, his appointment signals the company’s commitment to “long-term strategic growth” and “strong cost discipline.”

Match Group’s most popular app Tinder has seen paying users and revenue fall in recent quarters, though Hinge continues to grow. The company has allocated a lot of resources to AI-driven features like photo selection and prompts that provide users help with crafting messages and bios, which seem to be the direction many dating apps are going. In fact, Grindr is testing out a new virtual wingman using generative AI.

Dating apps may be inadvertently helping contribute to greater income inequality, according to a new economic study.

According to The Independent, researchers at the Federal Reserve Banks of St. Louis and Dallas and Haverford College found that at least half of the rise in income inequality between 1980 and 2020 can be attributed to changing preferences and the rise of online dating. Because of how easy it is to filter based on preferences, people are more likely now to marry someone in the same socioeconomic bracket than they were before.

According to The Independent, researchers specifically tracked education, race, income, skill level and age of recently married people between 2008 and 2021, as dating apps became more popular. The findings suggest that people are marrying someone more like themselves than they were likely to in earlier years, which the researchers have tied to half of the increase in household income inequality during the same period. When higher-earning people couple up and lower earners do as well, it grows the disparity.