Online dating giants and start-ups are shifting their focus to friendship as a new revenue growth strategy. Bumble, Muzz, and Match Group are introducing friend-finding and community-building features to attract younger users who are experiencing dating app fatigue. Bumble, the company behind the female-focused dating app, is particularly optimistic about the potential of the friendship space. In May, they acquired Geneva, a community-building product that connects people based on shared interests. Match Group’s newest app Yuzu also offers a social-only mode in addition to its dating function.
Smaller players like Muzz and Grindr have also entered the friendship market by adding friend-finding and social networking features to their platforms. These companies aim to tap into what has been referred to as the “loneliness economy” following the COVID-19 pandemic.
However, analysts remain skeptical about whether this pivot towards friendship will significantly boost revenue growth for online dating companies. Platforms like Tinder and Bumble primarily rely on freemium subscription models for revenue generation. Analysts argue that users may be less willing to pay for friendships when mainstream social networks like facebook offer similar services for free.
To monetize their friendship products, both Bumble and Muzz are considering paid partnerships, advertising, and subscriptions. Building a successful advertising business would require attracting new users and promoting daily engagement with these products.
Another option is connecting payment with real-life meetups. For example, Timeleft charges users a fee or membership fee to reserve spaces at weekly dinners while partnering with restaurants for meal payments.
Despite potential challenges in generating direct profits from friendship products alone, companies like Bumble and Muzz believe that these features can keep users engaged with their brands even when they’re not actively seeking romantic partners while serving as an entry point into more profitable dating services.
Maxime Barbier, CEO of Timeleft believes that traditional online dating methods such as swiping and texting are losing popularity among individuals seeking alternatives.
