Industry

Bumble says that singles are turning to dating apps more than ever, evidenced by its recent finding that over a billion matches were made on its app in 2021, a 25 percent increase from the previous year.

The dating app also shared that over 9 billion messages were exchanged globally, up nearly 40 percent from 2020, showing that dating app usage during lockdowns wasn’t a temporary thing. Rather, once restrictions lifted, people were more eager to login to the app and start looking for matches as well as virtual date, and were also eager to use dating apps to get back out there and meet matches in real life.  

Bumble said that the highest number of message exchanges were between October and early November, just prior to the holiday season. It’s also worth noting that this was just prior to the emergence of the highly contagious Omicron variant of Covid, which has led to global lockdowns and restrictions once again. Still, the company doesn’t see things slowing down as we enter into dating’s “high season,” between New Year’s and Valentine’s Day.

Match Group has agreed to pay $441 million in a settlement with some of Tinder’s former employees, shutting down the lengthy trial before closing arguments, according to Reuters.

The plaintiffs included Tinder co-founder Sean Rad among other former employees, and the trial got heated between Rad and former IAC CEO Barry Dillard. Prior to the trial, emails from former Match Group CEO Gregg Blatt were released to the public, showing that he tried to woo talented people into key roles at the company with a higher stock valuation compared to what he told the Tinder employees who had options to exercise.

According to The Daily Mail, emails revealed that Blatt valued the dating app at nearly $12 billion in 2016, more than a year before Match Group valued Tinder at only $3 billion as Sean Rad and other employees were forced to exit the company. Rad and the other plaintiffs who filed the lawsuit claim Blatt purposefully devalued the stock in their negotiations, citing the emails as evidence. 

The dating app industry is expected to grow to over $11 billion by 2028, thanks to the increased use of smartphones and people turning to them for connection during the pandemic.

A new report by Grand View Research found that the industry is doing better than ever and will only continue to grow at a rate of 5.6% compound annual growth rate (CAGR) through 2028. The increasing global reach of smartphones and internet access has helped to propel the industry forward, as well as pandemic lockdowns and the increased interest in virtual dating.

The study also found that the 18- to 25-year-old market is expected to register the second largest CAGR of 5.8 percent over the same period. Dating apps have their eyes on Gen Z daters who are looking for something more engaging than the typical routine of swiping through profiles on an app, as they have grown up with smartphones and virtual experiences. Many of the new offerings that apps like Tinder are unveiling include interactive content. Tinder and Bumble have both recently announced that they will be offering experiences in the metaverse where daters can create avatars and meet in virtual spaces to date.

Shares for Bumble Inc, which owns the popular dating apps Bumble and Badoo, fell more than twenty percent after the company’s third quarter earnings call in November. 

The dating app went public earlier this year, with shares taking off out of the gate. In recent weeks however, investors have cooled on the stock, and Bumble has pointed to pandemic lockdowns in strong markets like Japan which have cut into the company’s overall revenue. The latest dip after the earnings call was the stock’s lowest point yet. 

According to Forbes, for the first time since its IPO, Bumble posted a decline in overall user growth, with total paying users dropping to 2.87 million through September, down from 2.93 million in the second quarter.

Dating apps like Tinder, Plenty of Fish and others under the Match Group umbrella are pushing users to call their Senators to pass the Violence Against Women Act. The Act lapsed in 2019 and has not been reauthorized since.

While the bill has already passed the House with a Democratic majority plus 29 Republicans joining to pass it, so far it has languished in the Senate. Match Group decided to take matters into their own hands and push for passage of the bill to protect users of their apps, especially as the company continues to put more safety measures in place to protect users against harassment and violence.

According to The Hill, the bill would provide funding to state and local governments to address domestic abuse, sexual assault, dating violence and stalking which has become even more of a problem with the increased use of dating apps. It would also narrow a loophole to prevent partners and boyfriends convicted of domestic violence or abuse from buying or owning guns. (Currently only spouses and former spouses are prevented from buying a gun if convicted.) A number of Republicans have opposed the bill because they see it as an infringement on gun rights. 

Bumble announced that it is exploring how to employ the metaverse and Web 3.0 into a relaunch of its Bumble BFF platform. It also added language badges as a new feature to help users connect. 

The move towards interactive experiences seems to be where dating apps are headed, driven by younger Gen Z daters who prefer game-like experiences to swiping. Tinder recently announced that it was testing an avatar-based virtual experience called Single Town where users could meet each other in real time on different online spaces, like “bars” before agreeing to meet in person.

The rising popularity of cryptocurrency is also a factor, as Bumble has indicated it intends to create a crypto goods economy to monetize the new platform, as has Tinder.