There’s Pent Up Demand for Online Dating and Match Group is Positioned to Capitalize
The pandemic has put a pause on the dating life for many U.S. singles on the prowl, creating pent up demand for mingling that will be unleashed once the risk of contracting coronavirus slows down, according to a new survey from Jefferies research.
Online dating app slump: Usage of dating apps has declined, with 34% saying they have been using them less compared to Pre-COVID vs. 27% using them more, according to Jefferies. Of those who have not gone on an in-person date in the last 3 months, 53% blame it on COVID-19. Despite the disrupted dating scene, 47% of respondents still went on an in-person date after matching on an app.
Paying up for love: Staying on the dating sidelines might be influencing some users to make up for lost time. Jefferies found that 37% of paying users said they will increase their spend on dating apps in the next few months, while 11% said they will cut their spend.
Match Group looking attractive: Match Group, the owner of apps including Tinder, Hinge, Plenty Of Fish, OKCupid, and Match, is in the best position to take advantage of the factors driving growth in online dating because of its strong portfolio of brands that are resonating with consumers. Tinder is the most preferred app of 30% of respondents, more than double that of the nearest competitor.
“MTCH's basket of dating app assets dominates consumer preferences, with 60% of respondents picking a MTCH-owned brand as their preferred dating platform,” according to Jefferies’ recent research report.
The competition: Jefferies cites Facebook’s entry into dating as a top potential threat to Tinder’s growth. Match Group is also battling it out with Bumble, which is reportedly eyeing an IPO in 2021 that would value the company at $6 billion to $8 billion.
