Tinder

Every new dating app on the market is trying to compete with Tinder’s soaring popularity. The only problem is, not many differentiate themselves enough to do it effectively. Most of the new apps have the same basic concept – swiping through photos of people nearby, seeing who you might want to message. Clover wants to do things a bit differently in the latest version of its dating app.

Clover launched back in April 2014 with little fanfare, but recently they have debuted a new feature to try and distinguish themselves from the Tinder-like apps. While many people enjoy “Tinder-ing, ” there is still a gap between what people expect from an online dating site or app and what they actually get – leading to much disappointment. Fortunately, this problem might persuade daters to try new apps – hoping to find the right formula for dating success.

Part of the problem Clover execs noticed with Tinder is that people weren’t actually meeting up in real life – they were just scrolling and messaging. So they decided to make Clover focused on getting to the actual date - but with simplicity and ease like Tinder, rather than complicated matching algorithms and a long communication process like traditional dating sites.

Instead of encouraging people to just scroll through photos, Clover’s newest version includes an “on-demand” feature that allows you to meet matches IRL (in real life) more quickly. It works like this: you pick a date and time in the calendar and where you want to meet (your favorite bar, restaurant, etc.), and the app suggests a potential prospect to join you. You then decide if you’d like to spend your time with him/her. If you do, the date is confirmed and all you have to do is show up on time.

“Our new on-demand service will find people that actually want to meet you and you’ll be able to find a date as easy as it is to order a pizza or a cab,” says Clover CEO Isaac Raichyk.

Raichyk argues that it is difficult to actually go on a date using other apps or even dating sites like OkCupid. Just because people are matched doesn’t mean that they will make the effort to meet. So why not do it more organically by confirming a date and time to see if there’s chemistry between you in person rather than waste more time texting back and forth for nothing.

While this sounds really good in theory, the app will have to prove itself in practice. The premium service is free for users to download and test for a week, but after that, it will cost you $9.99 per month - a hefty fee compared to most apps, but cheaper than online dating subscriptions and personal matchmakers. There are also certain pay-to-play features like a $.99 charge to change your name/ handle. The new on-demand feature however will be included in the free version.

Just how crazy are single consumers for Tinder? And how much will they be willing to pay for the service?

The company is betting that certain features will be very valuable to Tinder users who have been requesting them since the service launched. So valuable that the company will be beta testing different price points in the UK, Germany and Brazil, with prices ranging from $.99 US to $4.99 to as high as $20.00 US for the premium version of the app, Tinder Plus.

Tinder Plus will roll out in these three markets first to determine how to proceed in other markets.

Just as Tinder’s founder Sean Rad was at the top of his game, enjoying the enormous success of his dating app Tinder after two short years on the market - and about to announce the new features offered in the latest version of the app - the board has decided to take away his CEO title.

As reported originally in a cover story for Forbes Magazine, Rad has been demoted to President, his management power greatly reduced for a yet-to-be-determined CEO who will take the reins of Tinder from him. According to Forbes, IAC decided that the company needed a more seasoned CEO (“an Eric Schmidt-like person”) leading it and taking it to the next level of a viable, revenue-generating business, as opposed to the young and green entrepreneur who brought Tinder to its current success. And also, preferably not a CEO tainted with scandal.

When Rad first launched Tinder, he did so with a lot of help from his friend and social trendsetter Justin Mateen. By approaching social influencers at universities (such as fraternity leaders), Mateen managed to get a lot of people using the app quickly, so the user base only grew stronger with time and more than a little PR.

Mateen and Rad built up the company together, but the scandal started when Mateen started dating one of their employees. When that relationship went south, the employee decided to pursue a sexual harassment lawsuit based on angry and inappropriate texts she had received from Mateen, and sued the company. She reportedly walked away with a little over a million dollars, but Mateen and Rad seem to be paying a higher price. Rad was implicated because he was the one who stripped her of her VP title and later “wrongfully terminated” her, according to the lawsuit.

But will all this drama derail Tinder itself? Not likely. The company continues to grow, and the revenue plan for its new premium service – Tinder Plus – rolls out this month with two new features for paying customers. The basic Tinder app will remain free.

The new version includes a travel feature called Passport, which lets users journey around the globe, swiping through matches in various cities instead of having to choose one based on their GPS location. The second feature is something users have been requesting from the beginning – an “undo” button that lets them revisit profiles they’d already rejected. Everyone deserves a second chance, right?

The company plans to launch another feature in the near future called “Places,” which will allow users who frequent the same places to meet over the app.

Will Tinder maintain the enthusiasm of its investors and the public at large after Rad steps down? Will customers be willing to pay for the benefits of Tinder Plus? We’ll have to wait and see.

Let’s face it, we human beings are visual creatures. When you meet someone new in person, what’s the first thing you do? Most likely, you look at him and decide on how attractive he is. Would you pursue him if you had an opportunity?

This type of superficial behavior is pretty standard. Most of us assess and judge others according to their appearance. The soaring popularity of apps like Tinder give us evidence that even in the digital age when we can get more information on almost anybody we meet if we just took the time to Google them – we prefer to say yes or no based on their looks.

Case in point: in the two years Tinder has been on the market, smartphone sales have gone up dramatically, which means more people have access to the app. The statistics speak for themselves. Tinder processes more than a billion swipes daily, matches more than 12 million people in the same amount of time (only a fraction of the overall swipes are mutual however), and though the company won’t release information on the number of users, sources say it could be as large as 50 million active users.

More important than people signing up for Tinder is the fact that they use it – as regularly (if not more often) as other popular social media like Facebook or Pinterest. According to a recent article in The New York Times, on average, people log in to the app 11 times a day. Women spend as much as 8 and a half minutes on it, while men spend 7.2 minutes (sorry guys). If you add it up, that’s almost 90 minutes per day.

But is the phenomenon of Tinder purely based on our basic animal instincts? Are we really only looking for someone who is physically attractive, or who embodies a physical ideal of some sort?

Maybe not. Many of Tinder’s users (mostly men) are looking to rogue apps like Tinderoid that manipulate Tinder’s database so they can “swipe right” to multiple profiles at once without even looking at a single photo. They are looking to increase their odds of matching with a woman, rather than looking for someone they find physically appealing. But what is the goal - is it just to hook up with more women? Maybe, but that’s another matter.

Tinder is a vehicle for meeting more people, and works a lot faster than your traditional online dating process. Maybe it’s appeal is not just about the photos, but instead due to the vast quantity of people you can “pick and choose” anytime, anywhere - and how quickly you can match and meet up.

The real question is: does it improve the overall dating experience? The jury is still out on that one.

IAC has released third quarter 2014 results. Revenue for the quarter totaled $782.2 million, up from $756.9 million in Q3 2013.

In the third quarter of 2014, consolidated revenue for IAC increased 3% year-over-year driven by solid growth at The Match Group and strong growth at Vimeo and HomeAdvisor. The Match Group revenue increased 12%, driven by 9% growth in paid subscribers to its dating websites. They now number over 3.6 million globally. Contributions from The Princeton Review and FriendScout24 – acquired on August 1, 2014 and August 31, 2014, respectively – also played large roles in The Match Group's success in Q3 2014.

Several other important segments also ended in the green, making Consolidated Adjusted EBITDA the dark spot in an otherwise-bright quarter. Third quarter adjusted-EBITDA was $135 million, down 18% from the third quarter of 2013. However, it was down only 1% when excluding approximately $14 million in net gains related to asset sales and the impact of around $13 million of acquisition-related differed revenue write-downs for the Princeton Review, FriendScout 24, and Slimwear.

At the end of 2012, dating site Hinge had recently launched and was overshadowed by the popularity of dating app Tinder. Unsure of how to proceed with less than $32,000 in the bank and only a few thousand users according to Business Insider, Hinge decided to bet big on the mobile platform.

"We made some business assumptions that turned out to be wrong," Hinge CEO and founder Justin McLeod told the news website. "We were like, 'This thing is running out of money, and we need to do something drastic."

In what seems to be a spur-of-the-moment business decision, McLeod and a couple of developers holed up for a few weeks and launched a mobile version of Hinge on February 7th of 2013. But the launch wasn't as smooth as expected - Apple at first rejected the app, which caused many sleepless night for McLeod and his company. They had planned a huge launch party in Washington DC where the app first launched, and until the morning of the launch party, there was no app available.

The launch party turned out to be a success, and more people signed up right after it than had signed up for the beta in all of 2012. It seemed Hinge struck a chord with users where Tinder left them feeling insecure - especially women. Hinge does not just match users based on location like Tinder does (which means a lot of random profiles get into the mix) - you only get matched through your circle of Facebook friends of friends, so everyone you meet on Hinge has some kind of link to your circle. This security has been particularly attractive to female dating app consumers.

McLeod is not about to sit still. He is grabbing a good portion of the dating app market share, and expects to compete heavily with Tinder for its core user base. But he's taking things one step at a time.

Instead of launching his app nationally, he has launched city by city, building up a solid user base based on demand before he moves into a new market. Also, potential Hinge users must be invited by current Hinge users - adding a level of exclusivity and security to the app.

Hinge is now one of New York's hottest startups. Although Tinder is much larger (it makes more matches per day than Hinge has in its entire history), McLeod's company is starting to steal some Tinder users. It has expanded to 20 cities including Los Angeles, San Francisco and Washington, D.C. It uses a waitlist to assess demand in other cities, then launches when a few thousand people have signed up.

"There is no shortage of companies that have tried to build what we've built," McLeod says to Business Insider. "But we're using the organic, city-by-city method, which I think is the biggest thing ... We're a utility to help users meet great people in the flesh as effectively as possible ...We want to be a house party that has a really good host."