General News

Yesterday eHarmony started up their Free Communication Weekend (FCW) again for 4 days. You can "Feel the Love" from July 24th to the end of the day on Sunday July 27th.

Free communication allows you to use the eHarmony guided communication process with the matches you receive and that you feel a connection with. Once it is complete you can then send emails to them as well. Free Communication doe not include skip straight to email, secure call (a phone service - see our eHarmony review for more details), and profile photos.

To participate in a FCW all you need to do is signup for an eHarmomy membership and take the profile questionnaire. This process will take you about 30 minutes and is a key step since the information you give them about your interests and personalty will be used by eHarmony's matching algorithm to match you with other high quality members. The membership account, taking the questionnaire, and receiving matches are always free and no credit card is required.

Tinder has hit a bit of a rough patch lately. The company behind the hyper-popular mobile dating app was recently slapped with a lawsuit by its former VP of Marketing, Whitney Wolfe. In the suit, Wolfe alleges that she was sexually harassed and discriminated against at work, stripped of her co-founder title, and forced out of the company when she complained.

There’s no question that Wolfe’s accusations have affected the people involved, one of whom was suspended indefinitely, but what remains to be seen is whether they affect the company as a whole and its majority shareholder IAC.

Investors have been hoping that IAC, which also owns Match.com and OkCupid, would use Tinder’s success to spin off its online dating businesses into a separate company, thereby making IAC shares more valuable. But now that Tinder’s in trouble, that prospect could be in trouble too. “Given what’s going on at Tinder, I would assume that probably would cause IAC and Match to think a little bit longer and harder about pursuing that at this juncture,” Scott Kessler, an analyst with S&P Capital IQ, told Bloomberg News last week.

I’m just guessing here, but IAC and its shareholders probably aren’t too pleased at this complication throwing a wrench in a very lucrative opportunity. Investors have been encouraging IAC execs for months to speed up the process of making Match its own business, but now their plans may be thwarted (or at least slowed down).

Last year, IAC made $788 million in revenue from membership and subscription dues for dating services – well more than twice what it had made five years earlier, despite the fact that they have yet to monetize Tinder. What's more important than revenue for investors is market value, which Tinder has in spades. Tinder is one of the hottest commodities on the market right now, and creating the separate Match group could cause spikes in the stock prices of both IAC and the newly formed company.

History has shown that this is a good move for IAC. When the company separated Match from its search business, its stock price jumped significantly. Barry Diller, IAC’s chairman, has also seen huge profits from spinning off businesses from IAC. The question now is whether or not Tinder is damaged goods and, if so, just how damaged. So far the company is remaining frustratingly tight-lipped about both Tinder’s trouble and the possibility of Match becoming its own company.

IAC is positioning itself to be the center of the online dating world. Its 150 brands are cornering the market, particularly Match.com, OkCupid, and popular dating app Tinder. Now, it’s added How About We to its roster. Neither IAC or How About We disclosed the purchase price.

How About We offers a unique twist in online dating – focusing on the offline part of the process. Members can create date ideas, post them to How About We, and see if anyone cares to join them on the date. This bypasses the typical process of scrolling through profiles and matches as you would do on other sites.

The company has gone through a lot of changes in the last couple of years, starting with broadening its reach to include curated dating services for couples (extending their user base and approach beyond just the singles market). More recently, the company purchased popular online dating site Nerve.com, and added three new content websites to the mix to offer editorial on dating advice, celebrities, sex, relationships, and other hot topics.

Did it spread itself too thin?

According to the New York Times, How About We co-founder Aaron Schildkrout (now the chief executive for This Life, Inc., the parent company of How About We) thinks this will only broaden their opportunities. “We spent the last five years building and scaling HowAboutWe; our unique ‘offline dating’ experience has been used by millions of people and has helped many, many people fall in love. Our new partnership with IAC will help us bring this dating experience to an even larger number of people than ever before.”

This contradicts his statements earlier this year, where he positioned the company to compete heavily with IAC. “The online dating business is completely monopolized — IAC owns online dating,” Schechter told Fortune in January. “So what we’re trying to do is build a media company whose sole focus is love. And we think that’s the way to beat IAC.”

The How About We dating service and media properties were sold to IAC, but a portion of the company remains independent: the couples service. Last month, employees were reportedly left in the dark about whether or not they would be fired in the wake of the acquisition, with some being promised they would stay only later to find that offer recanted.

According to the New York Times, some employees will be moving to IAC, others will be staying to work on the couples service, and some have been laid off.

Most things are going brilliantly for Tinder these days, but one thing most certainly is not. Whitney Wolfe, Tinder’s former vice president of marketing, slapped the company with a sexual discrimination lawsuit at the end of June.

In the suit, Wolfe claims her former boss called her a “whore” at a company event in the presence of Tinder CEO Sean Rad and that she was stripped of her status as a Tinder co-founder. When she complained about her treatment to other executives, including Rad, she says they forced her out of the company.

The story goes back to 2013, when Wolfe and chief marketing officer Justin Mateen dated for several months. After they broke up, Wolfe claims Mateen sent her a series of inappropriate text messages and e-mails filled with racist and sexist language. When she complained to Rad and Match.com CEO Sam Yagan, they allegedly ignored her repeated complaints about his behaviour.

Wolfe also contends that Mateen told her she was not listed in Tinder’s press materials as a co-founder because having “a girl founder” who was just 24-years-old (at the time) would devalue the company. Later, after Mateen allegedly called her a “whore” in front of Rad and other co-workers, Wolfe says she offered to resign in exchange for “modest severance” and the vesting of her stock options. Instead, she claims, she was fired.

John Mullan, one of Wolfe’s attorneys, said in a statement that Wolfe “lost her job simply for refusing to take the abuse any longer.” Another one of her attorneys said “IAC and Match.com, which own Tinder, allowed this culture to exist and did nothing to prevent the discrimination or harassment. IAC and Match.com need to be held responsible for their failure to supervise the executives at Tinder. There really was no ‘adult in the room.’”

In response, IAC indefinitely suspended Mateen. “Through that process, it has become clear that Mr. Mateen sent private messages to Ms. Wolfe containing inappropriate content,” the company said in a statement. “We unequivocally condemn these messages, but believe that Ms. Wolfe’s allegations with respect to Tinder and its management are unfounded.”

The story gets more complex when you try to determine who actually is a legitimate co-founder of Tinder. TechCrunch did an in-depth examination of the people involved in Tinder’s creation and it’s…convoluted, to say the least. It’s hard to see how they themselves can keep up with it all (and maybe they can't), much less anyone else.

Wolfe is seeking compensatory damages, including for lost pay and benefits, as well as punitive damages for emotional distress.

Jiayuan.com, the largest online dating site in China, surpassed the 110 million registered users mark on June 29, 2014.

Jiayuan got its start a decade ago to address the unique needs of China's rapidly growing urban singles population. The website was a pioneer in China's online dating market, and now ranks first in the country in terms of number of unique visitors, average time spent on the site per user, and average page views per user. Over the course of its 10-year history, Jiayuan has facilitated 12.3 million matches in China.

The site has become so big that, according to comScore, it accounted for more than half – 58.4% to be exact – of the total time spent on online dating in China in March 2014. It is the 60^th most visited website in the country according to Alexa.com, and the 336^th most popular website in the world.

Jiayuan.com hit the 100 million registered user accounts milestone back in January 2014, adding 10 million more users over the course of the last six months. "I am pleased to see Jiayuan's registered user accounts surpass the 110 million mark as we continue to gain momentum from our solid start to the year," commented Mr. Linguang Wu, CEO of Jiayuan, in a press release. "Passing the 110 million milestone speaks to the strength and growing popularity of our platform as we make the investments needed to increase our brand equity and solidify our leadership over our competitors. These investments include ramping up mobile monetization now that we have successfully grown our mobile platform to include 24.8 million registered user accounts and 31.2 million activated installments as of June 29, 2014."

One of Jiayuan’s recent investments is a partnership with animation firm Up Studios, whose brand Piggy in Love (which follows a pig looking for his lost love) will be featured in Jiayuan’s new mobile app. Through their licensing agreement, Jiayuan users will be able to send romantic animations and Piggy in Love emojis in their messages.

Mr. Wu concluded, "Looking to the future, we will continue to build upon this massive database of marriage minded singles by integrating it with our proprietary CRM system in an effort to consolidate the traditional matchmaking business in China which we believe is poised for a period of explosive growth. 2014 is an important year for us strategically as we make investments in our database of eligible singles to generate new revenue streams and ensure the long-term sustainability of our business."

We all know about dating app Tinder by now. It’s known less for its accuracy in matchmaking and more for its accessibility in meeting people anytime, anywhere – who are up for a brief fling or flirtatious chat. While Tinder is getting a lot of name recognition, another dating app called Hinge is slowly surfacing, city by city, taking the dating app world by storm and attracting a recent round of $4.5 million in venture capital money.

Why is Hinge getting so much attention (and money)? Because it is differentiating itself from Tinder in the most basic of ways. Hinge is focused on the quality of matches, which means instead of scrolling through endless photos and swiping left or right, the app finds a fixed number of matches for each user that they think suit you. Hinge is all about playing matchmaker. (It also doesn’t help Tinder that its CMO Justin Mateen was suspended recently for sexual harassment.)

Hinge matches people based on particular factors, namely profession, education history, and interests, as well who you’ve been interested in previously. What’s different about the dating app is that it’s not just pairing you with people from your circles with the same job or who went to the same college. Hinge looks for less obvious connections, like that Ivy League college alums like to intermingle, or that guys in finance like to date female lawyers. Plus, matches are all gained through your Facebook circles (friends of friends only), and you must have a Facebook friend who’s already on Hinge in order to join. It makes for a kind of exclusive club feeling.

Hinge started small in the D.C. area, but it’s iOS and Android userbase is up 300% this year in the nine cities it operates in: DC, Philadelphia, NYC, Boston, San Francisco, Chicago, Atlanta, Dallas, and L.A.

Hinge however isn’t focused solely on the dating game. They want to move in the direction of the so-called “social discovery” app, where they match people who could be friends based on interests.

The new $4.5 million round from Founders Fund and Lowercase Capital brings Hinge to $8.6 million in total funding. Right now, Hinge is free, but in order to be profitable for its investors the company is probably looking into adding premium services for a fee, or potentially licensing its technology, according to website Tech Crunch.

For now, it’s slow-growth approach and catered matchmaking are making it a big hit, especially among the more serious and discerning female daters. It will be interesting to see where it goes next.