Learn
Newsletter
Offers
Podcast
About
Pay My Rent
  Back
~
1
min read
· 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.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at Work
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 525288) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.