Tinder

I could say something about how hard IAC/InterActiveCorp is trouncing the competition, but…um… It hardly has any competition. The media conglomerate, helmed by Barry Diller, has been killing it in the online dating realm for years and shows no signs of stopping.

Thanks to its two massive dating sites, Match.com and OkCupid, IAC was already the biggest player in the game when it decided to shake things up last December by creating a special division for its online dating holdings called the Match Group.

This year, IAC has made more powerful strides in its quest to dominate online dating. It increased its majority stake in Tinder, the mobile app at the top of the mobile dating heap, and acquired most of the Brooklyn-based dating site HowAboutWe.

Slowly but surely, IAC has bought its way into the dating market. By the end of 2013, IAC reportedly hosted 30 million active users throughout its dating properties, 3.4 million of whom are paying subscribers. The Match Group is now responsible for approximately one quarter of IAC's total revenue. And they're not shy about singing their own praises.

“We are not just the acquirer of choice,” said Sam Yagan, chief executive of the Match Group, “we are the only acquirer.”

Investors, on the other hand, are a little more wary. Analysts are convinced that online dating's growth is likely to slow, despite the fact that the market has never been stronger in the US or abroad. The primary bump in the road is free mobile dating services, which are making it increasingly difficult for other dating services to generate a profit.

Mobile dating now accounts for around 27% of dating site services. As mobile audiences grow, dating sites are finding it challenging to turn those users into paying members. They are also challenged by a crowded market, which becomes more congested all the time as various niche sites pop up. Although many don't last for long, they're still successful in drawing audiences away from larger, more general dating sites.

With that in mind, IAC’s future may lie in Tinder. So far the app has put growth above revenue, but it is estimated that Tinder could eventually earn $75 million a year. First, the company has to figure out how to monetize it without losing users or slowing growth. Yagan is feeling positive about the future.

“It is not a winner take all dynamic,” he said. “There is a lot of concurrent usage. Unlike a car, the majority of online daters use multiple products, so you want to have a portfolio — a multibranded approach.”

Tinder has become incredibly popular in the last couple of years, thanks to its game-like format of swiping left and right, and to its easy set-up. There’s no time-consuming process of writing a profile and anguishing over what to say in your messages. You cut to the chase: yes or no.

But now, people are looking for easier ways to date than even Tinder can provide. For those daters, there’s a new app for that called Tinderoid, short for Tinder on Steroids.

This app is mainly catering to the male Tinder users and online daters, especially ones who feel they aren’t getting enough matches. With online dating, guys send out mass emails when they aren't getting responses, hoping someone will email back. It increases the odds, at least. With Tinder, guys are adopting the strategy of saying “yes” to every match, and are just swiping right without even looking at photos. They figure if they swipe right to as many candidates as possible, their chances of getting dates (or getting laid) increases significantly.

But all that swiping right can apparently be tiring.

Tinderoid adds features to Tinder that its creators think are missing, one of them being the ability for a user to like everyone in their area. Tinderoid founder Mike (he provides no last name) tells website TechVibes that a user can like as many as 10,000 potential matches in a few seconds.

Then you can skip all that swiping and order a beer, waiting for matches to roll in.

This isn’t the only new feature Tinderoid added. The app also allows users to search for potential matches using keywords, and view multiple results at the same time. So instead of looking at people one by one, you can select a bunch at a time, and again – see who bites.

And while Tinder doesn’t have an iPad app, Tinderoid offers support for the tablet’s larger screen.

According to Mike, the app is currently available for iOS and has been downloaded over 100,000 times. It has over 5,000 five-star reviews on the iTunes store, I’m guessing from its male user base.

Will this be helpful to daters in the long run? Maybe for some guys, but not for most daters. Women tend to get overwhelmed by the sheer number of matches and messages they can get when they are online dating, get frustrated, and stop using the service, and it’s no different with Tinder. Women are still more likely to swipe left, mostly because of tactics like this, where guys tend to always say yes, even if they might not be all that attracted or interested in a particular woman. They are just seeing who they can get.

Tinderoid is only available on iTunes, but the company is working on an Android version. It is free to download, but if you want all ads removed it costs $2.99.

A recent report of Tinder’s financial worth shows that its users aren’t going away anytime soon. The massively popular dating app is poised to increase its value and market share further over the next year. According to Market Watch, Tinder is growing at such a rate that Barclays predicts its valuation will reach $1.1 billion by the end of 2015, adding to IAC’s current $5.68 billion market cap. IAC owns many of the most popular dating sites, including Match.com.

What makes its value so high, considering the app is free for download? The answer is in the sheer number of users who download the app. As with most online dating sites, perception is key: the more users a site has, the more people will gravitate to it because they think their chances of getting a date, relationship or even hook-up increase.

Tinder’s popularity has taken off thanks to younger daters who embraced the mobile technology and liken Tinder to a game that is easy and fun to use. Plus, it has taken the stigma that is part of online dating away, because the app is mainly to support single people meeting each other casually as opposed to those looking to find serious relationships.

Tinder’s popularity is not just PR buzz. Its growth in the past year has been explosive, with 750 million swipes per day reported in February of 2014, up from 5 million in December of 2013. Today, it manages more than a billion swipes per day (resulting in 12 million matches each day). According to Market Watch, Barclays expects Tinder global daily active users to reach 20 million by April, or 40 million on a monthly active user basis. It also expects Tinder to generate as much as $180 million in revenue in 2015.

How Tinder will get this kind of revenue is unclear. Lately though, they have been floating a few ideas, including a “freemium” service where basic use of the app is still free but restrictions are in place that can be lifted for a fee - like the number of matches you get, or how many photos you see, or the ability to communicate. The founders don’t want to advertise on the app, but they are open to partnerships that would generate revenue from “real world behavior,” though they don’t define what that looks like. They are also focused on the age of Tinder users, and how they might evolve in their dating preferences as they get older. Right now, Tinder is mostly a product that young people use, especially teens and young twenty-somethings - those who might later graduate to a more serious pay service like Match.com.

Eyeballs are currency however, at least to investors, who see Tinder as a golden opportunity. For more on this dating app you can read our review of Tinder.

Some users have reported due to Tinder being down on Wednesday that they have lost all of their matches. According to The Wire and their communication with Tinder's VP of Communications, Rosette Pambakian, the Lost Matches bug has now been fixed.

No matches have been deleted and all you need to do to get your Tinder matches back is to log out of the dating app and then log back into it again.

We also learned that the reason why there was a Tinder outage on Wednesday was because Facebook went down. Tinder relies on Facebook to retrieve the user information for their members. If the Facebook service is not accessible then Tinder will not work either.

Tinder reported on their Twitter account and Facebook that they had a brief outage on September 3rd around 1pm. The resulting outage prevented people from logging into the Tinder dating app both on the iPhone and Android phones.

The technical problems appears to have only lasted about 20 minutes. No word yet on what caused the issue.

Update: The Tinder dating app was down because Facebook was down. Since Tinder uses your Facebook account to log you in that was the cause of the service interruption.

Like with online dating, Tinder seems to give females the advantage over males, at least in terms of your chances for getting a date.

Many guys complain that women have it better in the dating world because women can choose who they want to date, while guys are left saying "yes" to every woman's profile they view online or on an app like Tinder, just to improve their chances of meeting someone. (Women tend to be more picky, and say "no" to most men, probably because so many men just swipe right to everyone.) While online dating does seem skewed, apparently some tech geniuses have decided to make the odds work in the guys' favor.

Instead of manually going through all the matches Tinder sends his way, one techie decided that he could automate responses. According to website ValleyWag, former Microsoft developer Yuri de Souza details "how he reverse engineered Tinder to mass-like every girl on the network." He was sitting around one Sunday afternoon mindlessly swiping right on all of his female matches, hoping that one would swipe right back, when the idea struck him.

" [I] recalled my friend telling me how he would spend hours swiping right on Tinder just to accumulate as may matches as possible," de Souza told ValleyWag. "This had me thinking, why can't I reverse engineer Tinder and automate the swipes? After all, I'm pretty darn good at taking things apart!"

He was successful, and went to share his idea with other guys, only to find he wasn't the only one or even the first to try to game the system.

While it seems counter-intuitive to accept matches that you don't even see in the hopes of having more choice in who you want to date, this is the thinking behind guys looking to game the dating app system. (An article in New York Magazine last year naming the most successful online daters included a guy who admitted to saying "yes" to all women on Tinder to improve his chances, so this might have inspired a lot of guys to follow his lead.)

Other tech-savvy users have created shortcuts and automation to help them (and other guys) avoid the challenging task of looking through so many women's profiles. It turns out, people aren't even willing to spend the time to look at photos anymore, let alone read words in a profile.

What does this mean for dating? While it's understandable that guys are frustrated with their lack of choice (and womens' general avoidance of swiping right unless a man really intrigues her), is reverse-engineering the best way to meet a woman? Maybe apps like Tinder, fun and game-like as they are, are not the best avenue for many people. Instead of casting a large net and hoping to catch someone - anyone - why not try to focus on what you want? If you're putting it out there that you can't seem to meet a woman, then likely creating an automated way to say yes to everyone on Tinder isn't going to improve your game.

Maybe it's time to try another site or app that is more conducive to your search. Better yet, try something more old-fashioned. How about you approach a woman in person and ask her out? That will make you stand out from the Tinder crowd.

For more on this dating app please read our Tinder review.