Industry

Popular dating apps like Tinder, Bumble and Grindr are building and testing out virtual wingmen and other AI-driven tools on their platforms to help generate icebreakers and offer instant feedback, according to a new feature in The Financial Times.

Grindr chief product officer AJ Balance told the Financial Times that the gay dating app’s chatbot assistant called Grindr Wingman would help users with their dating “pain points,” like helping them initiate flirty conversation via curated prompts based on user profiles and chat histories.

“It’s that friend in the bar who’s helping you to ask someone out — but in the virtual context,” Balance told FT, saying that using AI in this way could help take the hard work out of online dating.

Russia is advising its citizens to log off dating apps for a while after regions of the country were invaded during a surprise incursion by Ukraine.

According to a report from Politico’s European Bureau, the Russian government warned that Ukraine was using information gained from dating apps to plan its attack. Dating apps generally collect sensitive information such as location data as well as personal information like names, birthdates, ages, and more.

Popular U.S.-based apps like Tinder and Bumble had already pulled their platforms out of Russia when the country invaded Ukraine in February 2022, but many dating apps remain in use.

Dating app Bumble’s share value dropped 30 percent after the company slashed its annual growth revenue forecast in its second quarter earnings report.

According to Reuters, Bumble also fell below estimates for its second quarter revenue. The dating app company reported revenue of 268.6 million, below analyst expectations of $273 million.

This report worried investors who compared Bumble’s second quarter to rival Match Group’s, which reported relatively better revenue numbers driven by robust growth at Hinge and more stability at Tinder.

Dating app giant Match Group announced its plan to cut six percent of its workforce after numbers for the company’s second quarter fell short of expectations, according to BBC.

Match Group owns the popular dating app Tinder (which has seen a significant decline in downloads), along with Hinge, Plenty of Fish and OkCupid, among others. The company’s second quarter earnings report showed an 8 percent decline among the number of paying Tinder users according to multiple reports. Hinge still remains a bright spot with significant growth.

According to BBC, Match Group said job cuts would largely come from shutting down its live-streaming app Hakuna and removing live-streaming features from some of its dating apps. (Despite the popularity of livestreaming dating apps in China, it hasn’t really taken off in the rest of the world.)

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.