Just like you with your ex, the general public has fallen out of love with dating apps.
What happened: Bumble co-founder Whitney Wolfe Herd is stepping down as CEO of the dating app company and will be replaced by current Slack head Lidiane Jones next year.
Why it’s happening: Bumble has lost its buzz since going public in 2021, with shares falling ~83% since its IPO. So, like a middle-aged divorcee, the company wants to shake things up.
One tool that the new CEO thinks could help do just that is (surprise, surprise) AI. Jones told The WSJ she believes it could help users find their perfect match faster.
- Other dating apps are already testing out AI to do things like select optimal profile pictures, while new AI apps meant to act as digital wingmen have cropped up.
Big picture: It’s not just Bumble that’s struggling. Shares in dating app leader Match Group (parent company of Tinder and Hinge) fell by ~17% after the company lowered its 2023 revenue projection and reported a fourth straight quarterly decline in paying users.
Despite shiny new ad campaigns and $500 deluxe membership options, consumers are becoming less likely to pay for dating apps amidst choppy economic conditions.