Popular dating app Tinder introduced a new update this week that is drastically changing how users are expected to interact with the service. The app functions by showing users the picture of a local single and prompts them to swipe left to reject and swipe right if you’re interested. When two users are interested in each other, it prompts them to start chatting. In the past year Tinder has become the new standard for online dating among millennials. In an October 2014 report in the New York Times, Tinder reported that every day they see a billion “swipes” across their user base and more than twelve million matches. This most recent update changes the game significantly because those right swipes just became a lot more valuable.
Now, instead of having unlimited swipes left and right, users have a set number of positive swipes per time period. Use them all up, and the app will prompt users to either wait until they recharge or subscribe to “Tinder Plus,” the app’s new premium tier of service. “Plus” users get unlimited likes, the ability to “rewind” on an accidental rejection, and view profiles from anywhere in the world (rather than your specific area). Most interesting is the cost, which is variable based on how in-demand Tinder finds you. Users under the age of 30 pay $9.99, while older users can expect to pay twice as much. The update has currently only launched on iOS, soon to hit Android and other platforms.
It’s a move that is sure to annoy thousands of young singles across the country; the update has already prompted widespread low ratings on the app itself, with many users ready to jump ship. Such a negative reaction draws the question: why introduce all of these monetization mechanics at once?
In one swift update, the Tinder experience is irreversibly hindered for users who would rather not pay the price. In an app space already filled with free competitors (OkCupid now contains a Quickmatch feature that takes on most of Tinder’s features), going paid seems like the quickest route to death for Tinder. But killing Tinder just might be the grand scheme of Tinder Plus.
Apps are frequently a fad market. The hot new thing becomes tired and rote within months, and staying ahead of the curve is a costly proposition. Just as quickly as Snapchat became a phenomenon, most other messaging apps introduced tools for instant photo sharing. Yik Yak has already seen a slew of similar anonymous message board apps swallow market share. It’s a ruthless business. So what if Tinder is simply cashing out while they’re on top? Sure, most users won’t subscribe to Tinder Plus. But plenty will at anywhere from $10 to $20 a user. If just five percent of the app’s 50-million users buy a month, that’s twenty-five million in the bank, minimum. That cost rolls over month-to-month, until the user base finally dries up. Not to mention ad sales, which were also introduced in this latest update. The money stacks up quick. Compared to previous valuations of the company in years’ past (most hovering at around $1 billion) the math of burning out bright starts to make more than a little sense. All apps die. Perhaps Tinder is simply sprinting to the inevitable, lining its pockets all the way.
Follow Chris Berg on Twitter @Mushroomer25