Online dating companies are shifting their focus to friendship and social connections in an effort to boost revenue growth. Bumble and Match Group are launching new products that allow users to find friends and connect with others based on shared interests. Bumble’s CEO Lidiane Jones sees “untapped potential” in the friendship space, while Match’s CFO Gary Swidler views their new app Yuzu as a “testing ground” for future features.
Smaller rivals, such as Muzz and Grindr, are also exploring social features to broaden their user base. Start-ups like Timeleft and Pie are tapping into the “loneliness economy” by offering group social events and connections. However, analysts are skeptical that a pivot to friendship will significantly boost revenue growth, citing the challenge of finding users willing to pay for friendship features.
Tl;dr:
- Online dating giants Bumble and Match Group are launching friendship and social products to attract younger users and reverse post-pandemic slowdown.
- The companies are betting on the “untapped potential” of the friendship space to diversify their business models and increase revenue growth.
- Smaller rivals and start-ups are also moving into the friendship market, exploring new ways to monetize their products.