 |
|
|
|||||
When Spencer Rascoff took over as CEO at the struggling dating app giant Match Group in February, one of his first orders of business was to acquaint himself with all the services under his purview. Match, which owns and operates more that 45 dating apps, including Tinder, Hinge, OKCupid, and Match.com, has seen its stock price drop more than 80% from its 2021 high amid growing fatigue with online dating and a generation shift away from apps. After explosive growth during the pandemic, Matchs annual revenue has been flattening, in large part because growth at Tinder, its once-reliable cash cow, has stalled. Rascoff, the cofounder and former CEO of Zillow Group, is tasked with turning things around. Rascoff asked the leadership of Tinder and Hinge to each take three hours and present their apps to him. The Tinder team began by walking him through the apps financial results and business metrics. They then got to the product road map, and finally to the people and culture. The team behind Hingewhich grew revenue by 39% last year, providing a rare bright spot in the Match Group portfoliotook an entirely different approach. They started with consumer insights. This is where Gen Z is at. This is where Millennials are at. This is the zeitgeist of the world. This is what they want. This is how they date. This is how they think. This is how they connect, Rascoff recalled in May, as he told the story to the audience at the JPMorgan Global Technology, Media, and Communications Conference. Only at the very end, did they actually share, briefly, revenue and financial metrics. Rascoffs conclusion: If you want to understand why Hinge is winning and Tinder was losing, thats it. Thats why. A little more than a week later, Tinder CEO Faye Iosotaluno announced that she would step down in July, after less than two years in the role. Rascoff is taking the reins himself. Match shares rose 1.3% following the announcement. Tinder, which accounts for more than half of Match Groups revenue, has had a difficult run. It grew revenue only 1% last year and has been shedding users: Its lost more than 1.2 million paying subscribers since the start of 2024. (When Match Group reported its Q1 earnings in May, it also announced it was laying off 13% of its workforce.) Tinders not alone: In January, rival dating app Bumble announced that founder Whitney Wolfe Herd would return as CEO, replacing Lidiane Jones, who had been in the role for all of a year. In 2024, Bumble app grew its paying users by 11% to 2.8 million. But in the first quarter of this year, its revenue decreased 6.5% year over year, to $201.8 million, and it shed nearly 100,000 paying users since the end of 2024. Meanwhile, the average revenue per user has dropped 15% since 2021. Bumble has signaled in earnings that it has had difficulty retaining younger users, particularly Gen Z. Its stock is down more than 40%, year over year, and off 90% from its post-IPO high in 2021. (Match and Bumble both declined to make executives available for interviews for this story.) Rascoff and Wolfe Herd are now embarking on ambitious turnaround plans that have them rethinking what users want from Tinder and Bumbleand how the dating apps underlying user experiences can deliver it. This generation doesnt want more matches. They want better ones, Rascoff said in a recent Instagram post. And though their target audiences may be different, its a lesson both can learn from Match Groups emerging darling, Hinge. Hinging on connection Led by CEO and founder Justin McLeod, Hinge launched in 2012the same year as Tinder and two years ahead of Bumble. But while Tinder became a pop-culture staple, thanks to its addictive swipe-right UX, Hinge remained fairly under-the-radar. Its motto is designed to be deleted, and McLeod has focused on creating a user experience that optimizes for lasting connections. Customers logging off the app for good rather than swiping forever is considered a success. That ethos is paying off. In 2024, Hinge took in $550 million in revenue, driven by a 23% rise in paying users. In October, it leap-frogged over Bumble to become the second most downloaded dating app in the U.S. for the first time ever (Tinder retained its no. 1 status). To guide this kind of user behavior, Hinge has deployed a counterintuitive product strategy. Most apps try to reduce friction to make the user experience easy and addictive: Think of the simplicity and elegance of swiping through unlimited options on Tinder, without any pressure to message potential matches. In September, Hinge bucked that trend and deliberately inserted a stumbling block for users with a feature called Your Turn Limits. The feature solves one of the biggest challenges users face when trying to secure a date: unanswered messages from people who ghost their matches. Now, Hinge users with too many unanswered messages are required to send a reply or end the conversation before being allowed to connect with other users. Our north star metric is whether users are getting out on great dates or not, McLeod told Fast Company in an interview in February. After Your Turn Limits was released, the app saw fewer matches and likes, but more people going on dates. There are all of these kinds of techniques that can be really engaging and keep people sending lots of likes, but don’t necessarily lead to more dates, McLeod explained. So we do things differently. Hinge has a longer sign-up process than Tinder and Bumble. It asks users to submit at least six photos and answer a minimum of three prompts. On Tinder, users simply fill out basic information like their name, birthday, and sexual orientation, and add at least one photo; Bumbles sign-up process is similar. Hinge also takes a different approach to its premium offerings than Tinder. Tinders premium tiers focus on giving users access to more swipes or a profile boost to put them in front of more people, which helps with engagement but doesnt necessarily lead to quality matches. Hinges premium subscriptions have similar features but they also prioritize optimizing for better matches. Premium subscribers are able to filter profiles for characteristics like political affiliation, education level, family plans, or whether someone smokes. Subscribers can also get enhanced recommendations, where the apps algorithm surfaces profiles based on users recent activity. Perhaps taking inspiration from Hinges playbook, Tinder recently started letting users filter profiles by height. The new rules of dating Rascoff and Wolfe Herd diagnose the problems with Tinder and Bumble differently, but the result is the same: a decline in quality of matches. In interviews and earnings calls, Rascoff has said that Tinder suffers, first and foremost, from a perception problem as a hookup appa message that doesnt resonate with Gen Z users. Instead, he wants to help Gen Z users create casual, spontaneous connections without the pressure of hooking up. Were aiming to introduce new ways to meet new people in lower-pressure environments. Thats really what Gen Z wants. Rascoff said at the Wall Street Journals Future of Everything conference in late May. He signaled that even the apps core usr experiencethe profile swipecan be problematic. The high-pressure kind of product offering of looking at a photo and judging it, that is cringey for a lot of Gen Z people, he said. It makes them feel bad about themselves to look at photo and say thumbs up, thumbs down. (Rascoff went even further, writing on Instagram last week that The next era of dating wont be built on swipes alone, but he has since edited that line out of his post.) To create more casual dating experiences, Tinder is testing a new Double Date feature that allows users to pair up with a friend and swipe on other pairs of friendsand ultimately go on group dates. Currently available in Europe and rolling out in the U.S. later this year, the feature appeals to younger users: On Matchs Q1 earnings call, Rascoff reported that nearly 90% of Double Date users are under 29 years old. The feature is also helping the company grow its user base, as users invite friends to join (or reactivate) the app to take part in Double Date. Just as Hinge incorporates speed bumps in its user experience, forcing users to send messages to prospects before getting more swipes, Tinder also seems to be experimenting with adding a bit more friction into its own UX. To encourage good behavior on the app, the company recently introduced Are You Sure?, a feature that asks users to reconsider sending a message if it contains anything that could be considered distasteful. Rascoff has also announced plans to attract younger users by focusing less on making money from them through premium subscriptions. He told the crowd at the J.P. Morgan conference in May to think about Tinder as a bar for singles to meet. We’ve had two or three years of declining attendance at our bar. And the solution, to date, has been to increase the price of the drinks at the bar, and then occasionally come up with slightly different drinks or maybe sell food to an ever decreasing number of people at the bar. We must increase the number of people at the bar. According to Wolfe Herd, Bumbles problem isnt a lack of people at the barin some ways, its the opposite. During Bumbles Q1 earnings call, she noted that the company pulled in a lot of new users during the pandemic, but we now know they werent always the right fit, which led to fewer and lower-quality matches on the platform. As match quality dropped, some members got discouraged, found fewer successful matches and dates, and fewer people recommended the app to others, she said. The solution for Bumble is simple: Showing members people they want to see, getting them quality matches, quality chats, and closer to love. She has said that the company is pausing its efforts around monetization and growth marketing to instead focus on improving its matching algorithm and driving user engagement ahead of an app update this summer. And although she hasnt revealed too many specifics around how the app will change, she used her Q1 earnings call to highlight the importance of helping users create better profiles, giving them dating coaches to assist them through the process, and refining the apps ability to anticipate quality matches. She also signaled that its less about what new products Bumble will launch. We want you to see great people in great simple ways, efficient ways, but this is not about more features. Instead, the metrics that matter here are the quality of the engagement that people have on our product. In other words, shes orienting the app towards a north star that sounds very similar to Hinges. Incorporating AI Hinges recommendations algorithm has been a big draw for users. While Tinder relies heavily on a users location, age preferences, and swiping behavior to surface a users profile, Hinge generates matches primarily based on how a user answers prompts. Once it detects a pattern in the profiles a user is drawn to, it shows them more of that type of user towards you. In March, Hinge tweaked its algorithm to give users more targeted AI-powered recommendations. That update led to a 15% increase in matches and contact exchanges according to Match Groups Q1 earnings. We really have an understanding of your inclination to like someone and their inclination to like you back. We have more and more information about you and we have more information about your taste and your preferences, we can much more strongly predict that match, Mcleod told Fast Company, explaining that the more time a user spends on the app, the better the algorithm gets to know them. Now, Tinder and Bumble seem to be following its lead. Introducing himself to investors on Match Groups Q4 earnings call, Rascoff stressed that AI can help with user engagement and retention on dating apps, just as it has for social media apps like TikTok and Snapchat. Tinder is currently rolling out a Hinge-like AI-powered matching, which generates more personalized connections based on user data and activity in select markets. Meanwhile, in a May interview with The New York Times, Wolfe Herd said that she wants to use AI to make Bumble the worlds smartest matchmaker over the next two years. The AI can now select the best people and start showing the best people the best people and start getting you to a match quicker, more efficiently, more thoughtfully, she said. All three apps are also harnessing AI to help users optimize their profiles to get better matches. On Hinge and Tinder, if a user says they are afraid of snakes, for example, an AI prompt might counsel them to write a couple of sentences about why to make their profile more engaging. Wolfe Herd has said that the company plans on introducing a coaching hub, powered by humans and AI, that will help users improve their profiles and dating skills. In a somewhat bleak turn, Tinder is using AI to teach users how to behave on dates. Rascoff also mentioned a voice-based AI coach that Tinder rolled out for the month of April in Matchs Q1 earnings call. [It] let users practice flirting with an artificial intelligence date to learn to break the ice through humor, storytelling, and playful interaction. Ultimately though, Bumble and Tinders success may hinge on whether or not theyre able to incorporate Hinges secret sauce into their apps: features that attract high quality, intentional users who engage with the app and find a great match. To a large extent, the companies need to go back to their original strategies, before monetization and a growth at all costs mindset ruined their user experiences. As Wolfe Herd said in Bumbles latest earnings call, There has been this mindset that has been pervasive in the dating industry that more features equal better outcomes. And let’s just launch something new. But some of the greatest consumer products have not changed all that much in the last decade if you think about it.
Category:
E-Commerce
Everyones always talking about new tools, but some of the best tools are the classic onesincredibly useful things that have been around for ages. These are the tools that have stood the test of time and are just as handy today as they were 20 years ago. They’re also the kinds of things you wont hear about from most people or publications. And it’s easy to see why: Theyre not the hot new thing. Theyre just quietly helpful for anyone in the know. So today, lets take a look at one of those web-wide classics. It’s the ideal way to tell, in an instant, whether a website is actually down or not. Ive used it for nearly two decades, and I still rely on it regularly. Psst: If you love these types of tools as much as I do, check out my free Cool Tools newsletter from The Intelligence. You’ll be the first to find all sorts of simple tech treasures! Is it down for everyoneor just for me? Sometimes, no matter what you do, a website just won’t load. The question is obvious: Wait, is the website actually down for everyone? Or will it just not load for me for some reason? Its an important question to ask. Sometimes, the problem may very well be with your computer, phone, or internet connection. Other times, the website may indeed be completely down for everyone. And these days? It can even be somewhere in between: A website might go down only for people in your region but be accessible elsewhere at the same time. The way to get to the bottom of whatever’s going on is with a simple little site called Down for Everyone or Just Me. To use it, just pull up the site in your browser of choiceon your phone, computer, or any other web-connected contraption. Then, plug in a website addressan address like fastcompany.com or theintelligence.com, a social media service, the name of an app, or anything else that doesnt appear to be working right. Plug in any website’s address to answer the age-old question: Is it down for everyone, or just for me? Youll learn whether the website appears to be down for everyoneor just for you. And its not only a one-way interaction, either: You can also report what youre seeing. And you can see what problems other people have reported recently, too. It really is that simpleno accounts, no paid subscriptions, and nothing but a few ads on a single page. Itll help you troubleshoot website connection problems in a snap, exactly as it has since the internet’s early era. You can access Down for Everyone or Just Me directly in your browser. Its completely freethe website just has a few ads and accepts donations. You dont have to provide any private information, and the privacy policy says the service wont sell your personal data. Ready for more tech-enhancing treasures? Check out my free Cool Tools newsletter for an instant introduction to an incredible audio app thatll tune up your days in delightful waysand another off-the-beaten-path gem in your inbox every Wednesday!
Category:
E-Commerce
Inside the historic Book Depository at Michigan Central, now home to Newlabs innovation campus, Brittanie Dabney is quietly building a different kind of startup. Her company, EcoSphere Organics, doesnt make apps or mobility tech. It makes biodegradable coasters out of banana peels. Dabney and her team collect food scraps from local restaurants like Alchemy and Johnnys Speakeasycoffee grounds, citrus rinds, and eggshellsand process them into small-batch products like compostable packaging and plant-based leather alternatives. Using dehydration and fermentation, Dabney aims to create materials that are both functional and regenerative. I want the vision of our process and manufacturing to be sustainable, Dabney says. No harsh chemicals, not water-intensive. A coaster made from grapefruit peels at Ecosphere Organics in their NewLab workspace. [Photo: Nick Hagen/Planet Detroit/courtesy Next City] EcoSphere is still in early development, operating with grant funding and limited access to production space. Once were able to get warehouse space, then well be able to take on more, she says. The company is part of a growing movement in Michigan to look beyond composting. With 745,000 tons of food waste landfilled in Michigan every year, theyre exploring alternatives: upcycling, food rescue, apps, and decentralized infrastructure that can transform waste into something more useful. EPA data identifies more than 10,000 food service establishments across Michigan generating significant amounts of food waste, with an estimated total of over 167,000 tons per day. These range from school cafeterias and restaurants to correctional facilities and healthcare institutions, each with unique waste patterns and constraints. The most frequently listed facility type is full-service restaurants, which account for more than 5,000 sites in the data set. Other common sources include cafeterias, limited-service restaurants, and food service contractors. Wayne County alone accounts for the most food waste, with more than 177,0000 pounds of average daily waste across facilities, followed by Genesee, Kent, Macomb, and Oakland counties. This diversity underscores the need for flexible, localized strategiestechnologies and programs that can intervene at grocery stores, restaurants, institutions, and beyond. The innovations emerging in Michigan represent promising steps, but broader adoption and investment will be necessary to meaningfully reduce food waste statewide. Flashfood app: Where retail tech meets waste reduction While startups like EcoSphere are experimenting with banana peels and coffee grounds, larger players are tackling food waste at the point of sale. In Michigan, one of the most visible interventions comes from Flashfood, a mobile app that lets shoppers buy groceries nearing their sell-by date at a discountand from Meijer, the first U.S. retailer to partner with the platform. Meijer was actually our first U.S. customer, says Esther Cohn, a spokesperson for Canada-based Flashfood. Michigan was a natural next step because we already had a strong user base and Meijers scale gave us a way to grow quickly. The model is straightforward: store staff scan soon-to-expire itemsmeat, dairy, produceinto the app, offering them at steep discounts. Customers place orders on their phones and pick them up from coolers near the store entrance. The goal is to keep food out of landfills and into shopping carts. From a grocers perspective, youre making money back on items you used to throw away, Cohn says. Youre reducing shrink and avoiding disposal costs. Shrink refers to inventory loss from damage and spoilage. As of late 2023, Meijer customers had diverted more than 10 million pounds of food waste from landfills using the app, according to the companys corporate impact report. The program began in 2021. Meijer also became the first U.S. retailer to accept SNAP/EBT payments through Flashfood, expanding access to lower-cost groceries. Flashfood users purchase items through the app and pick them up in the store. [Photo: Nick Hagen/Planet Detroit/courtesy Next City] But the program requires infrastructure that many smaller grocers dont have: digital inventory systems, trained staff, and coordinated logistics. Even at Meijer, implementation takes planning. Were looking at multiple tools to address food waste, says Erik Petrovskis, Meijers director of environmental compliance and sustainability. That includes reducing waste at the source, diverting what we can, and making sure as little as possible ends up in a landfill. Volunteer-powered logistics: Food Rescue US in Michigan In a parking lot outside a Whole Foods store in Midtown Detroit, Janet Damian loads trays of bread, cut-up sweet potatoes, some pies, and pineapple into the back of her Ford Flex. This isnt a city-run program. Its one of more than 500 monthly rescues coordinated by Food Rescue US-Detroit, a tech-enabled nonprofit that redirects surplus food from stores and restaurants to food pantries, shelters, and fridges across Southeast Michigan. Elli Chivari, 22, and Jessica Awan, 19, bring carts with donated food from Food Rescue US to the WSU Food Pantry. [Photo: Nick Hagen/Planet Detroit/courtesy Next City] We rescue any type of foodfresh, frozen, prepared, nonperishable, says Darraugh Collins, who runs the organizations Michigan operations. Sometimes its a whole carload. Sometimes its just a few bags. The model relies on a lightweight infrastructure: a mobile app, a flexible network of 80 to 100 active volunteers, and over 144 food donor partners, including Target, Whole Foods, Plum Market, and LinkedIn. In 2024, the Detroit program alone rescued about 700,000 pounds of food, delivering it to more than 147 recipient agenciesmany of them in the city, even though most food comes from outside its limits. One of those volunteers is Janet Damian, a retired medical administrator who lives in Dearborn and picks up food weekly from Whole Foods and other locations. Were reducing food waste by distributing it to people who need it, she says. Its satisfying because the need is realand the appreciation is real. Her favorite moment? Delivering 30 birthday cakes from Whole Foods to the Wayne State student pantry. Their eyes lit up, she says. It was like a party. It doesnt matter what you bring, theyre just happy someones thinking about them. That joy is familiar to Kenya Maxey, who oversees the Wayne State pantry, which also includes a thrift shop. Weve seen over 6,700 students in the last 12 weeks, she says. The numbers started climbing in January. Maxey said the donations from Food Rescue US make their limited budget stretch further, and offer students a moment of normalcy. They get to shop like theyre in a grocery store, she says. And that helps them feel like themselves. Despite its reach, the model has limits. Were at capacity with the volunteers we have, Collins says. We need more funding, more drivers and ideally some paid positions to help us coordinate. The need is only growing. This story was originally published by nonprofit news organizations Planet Detroit and Next City through the MIT Environmental Solutions Journalism Fellowship, as part of a series investigating how Michigans food waste system contributes to climate change through landfill methane emissions.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||