Market share of online dating company
Industry Description The online dating industry (SIC 7299, NAICS 812990) consists of companies engaged in online matchmaking services.Most companies generate revenue under a subscription model.Swiping right, the app enables users to like another user anonymously or pass on them by swiping left.
After taking off on college campuses, Tinder now boasts 26 million matches a day, and its leaders have invested heavily in maintaining its reputation as a hook-up haven for young people.
The app is available in over 30 languages now and majority owned by Inter Active Corp (IAC).
By March 2014, the app had generated one billion matches, 800m swipes and 10m matches per day, as well as 300 marriage proposals.
To be successful, new entrants must have a differentiated offering. Attracting a large enough user base is the main hurdle – it is challenging for new companies to recruit new users when they do not already have a substantial pool of other users.
As a result, marketing costs for new firms are disproportionally high.