Your next Tinder date obviously won’t be in the metaverse, at least not anytime soon. Bernard Kim, head of Match Group, has asked Tinder’s Hyperconnect unit (acquired in 2021) to scale back its dating plans in the metaverse. In his letter to shareholders, Kim said the uncertainty about the success of virtual worlds dictated that the team “not invest heavily” in the metaverse. Match also blamed the Hyperconnect purchase for an operating loss of $10 million last quarter, compared with an operating profit of $210 million in the same period a year earlier.
Tinder fears metaverse failure
The company is also taking a “step back” on plans to introduce Tinder Coins into the app, following inconclusive test results. While he didn’t remove digital currency altogether, Kim wished it would “contribute more effectively” to Tinder’s bottom line. Any virtual item will have to make a serious contribution to Tinder’s next phase of growth, the executive added.
At the same time, Tinder is facing a leadership shake-up. CEO Renate Nyborg is leaving the company after joining last September. The reason for his departure is unclear, but Kim said Match is looking for a replacement.
There’s no doubt that Tinder faces an uncertain future. In addition to the loss of Tinder, parent company Match predicted slow growth and said it was still grappling with behavioral changes brought on by the pandemic. While activity surged in the second half of 2021 as the epidemic waned, there was no similar spike in 2022. The number of new users trying their hand at online dating did not has not returned to pre-pandemic levels. The official hopes more aggressive product launches will entice new entrants, such as live video and “alibi” dating services.
Download the free app Tinder