Financial Times: Changes in digital dating: diversifying apps to meet generational needs
FINANCIAL TIMES – The digital dating industry, led by platforms such as Tinder, is significant, with Match having a market capitalisation of around $13 billion. But platforms face a unique challenge: successful matchmaking can shrink their user base. The number of paying users on Tinder is shrinking while Bumble is expanding, though more users doesn’t necessarily mean more revenue. Generational preferences pose another challenge; Generation Z is reluctant to use apps popular with older generations. Bumble’s strategy involves diversifying its services from friendship (BFF) to post-dating interaction (Official). These efforts are aimed at increasing user retention and monetisation, which are critical for sustainable growth.