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· Posted on
March 4, 2024

Bumble reports a $32 million USD loss as the dating app loses its charm with Gen Z

Bumble is laying off 350 staff after reporting a $32 million net loss, mainly due to its struggle to keep Gen Zs within the app.

What's the key learning?

  • Gen Z users are burning out from using dating apps, and the industry is struggling to keep younger customers keen.
  • When a generation's interests change, entire industries can get shaken up.
  • According to Pew Research, 41% of users over 30 have paid for dating apps, whereas only 22% of users are the ones under 30.

👉 Background: Bumble is the female-focused dating app where women make the first move. Since its launch in 2014, Bumble has expanded beyond dating, into Bumble BFF for friendships, and Bumble Bizz for professional networking.

👉 What happened: Now, Bumble is laying off 350 staff after reporting a $32 million net loss. And investors are swiping left on this dating app with Bumble's shares down more than 7%.

👉 What else: Bumble and its competitors are facing a major problem, where Gen Z users are burning out from using dating apps, and the industry is struggling to keep younger customers keen.

What's the key learning?

💡When a generation's interests change, entire industries can get shaken up.

💡According to Pew Research, 41% of users over 30 have paid for dating apps, whereas only 22% of users are the ones under 30. Apparently, Gen Z is a bit done with dating apps and are now looking for in-person meet ups.

💡This situation has played out in the fitness industry too, where companies pivoted from weight-loss to holistic wellness:

  • In 2018, Weight Watchers changed its name to WW with the tagline "wellness that works" to move away from the idea of an 'ideal body'.
  • In 2020, Lululemon started to introduce more inclusive sizing for the same reason.

‍

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