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The Hidden Hand Behind Your Swipes

The Hidden Hand Behind Your Swipes

Released Wednesday, 18th January 2023
 1 person rated this episode
The Hidden Hand Behind Your Swipes

The Hidden Hand Behind Your Swipes

The Hidden Hand Behind Your Swipes

The Hidden Hand Behind Your Swipes

Wednesday, 18th January 2023
 1 person rated this episode
Rate Episode

Episode Transcript

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0:00

It's the New Year

0:02

and for some that means resolutions to

0:04

eat healthy food and get in shape. You've probably

0:06

heard the standard advice to lose weight,

0:08

eat fewer calories than you burn, but

0:10

we at GastroPods wanted to know, is

0:13

a calorie a calorie no matter what

0:15

food it comes from? And is one calorie

0:17

for you, the same as one for me. To

0:19

find out, we visit the rooms where calories

0:21

are measured and the labs where scientists

0:23

are proving that the numbers on our food labels

0:25

are off sometimes by quite a bit.

0:28

So is the calorie broken? Find

0:30

gastric pod and subscribe wherever you get

0:32

your podcasts. I'm

0:34

Neil Apatel. I'm the editor and chief of the virgin

0:36

host of decoder. I want to tell you about a new

0:38

newsletter called command

0:40

line. Certain by the virgin's Alex Heath, and it's all about

0:42

the tech industry's inside conversation. The

0:44

scoops, interviews, and analysis, you won't get

0:46

anywhere else. Here's Alex. Each week,

0:48

you'll get scoops about what's coming next from

0:50

tech giants like Apple and meta and hear about

0:52

the product and people moves that

0:54

matter. And I want you to be part of the conversation,

0:56

so I'll be answering questions and featuring what

0:58

you have to say head on over to the verge dot com

1:00

slash command line to subscribe today. That's

1:02

the verge dot com slash command line.

1:09

Luxmi, I want to tell you about this guy.

1:12

A dating app guy? Sort of.

1:14

He's been using dating apps for nearly a decade.

1:17

But a few years ago, he discovered something

1:19

about them that made him feel a little cheated.

1:22

His name is Eve

1:24

Gilbert. He's an attorney in Midtown

1:26

Manhattan. It's sick that you're

1:28

a lawyer. Oh, thank you.

1:30

Oh.

1:30

does surprise a lot of people. When

1:33

I met him, he was wearing these heart

1:35

shaped flolita glasses and

1:37

leather pants. You're definitely the most

1:39

stylish slaver that I've come across.

1:41

Thank you. That is what I aim for. And

1:43

when it comes to the ops, he's seen it all.

1:45

He told me he started using them when he was pretty

1:48

young. Like

1:51

most of our gay kids, I was using

1:53

like Grindr when I first started because

1:55

that's like really the only way to

1:57

like me other gay people.

1:59

Grindr was enough when he was living in the

2:01

suburbs. But he moved to New York in

2:04

twenty sixteen and had a new city,

2:06

new me moment. And so we decided to

2:08

try some new dating apps. OkCupid

2:11

was

2:11

first. It had these quirky, queer

2:13

friendly ads on the subway that caught his eye.

2:15

I do fall for ads very easily. Then

2:18

he got on Tinder. When I started,

2:21

Tinder was like, oh, this is the fancy

2:23

one. This is the one that you go to to

2:25

meet like a more long term partner.

2:28

At the time, Tinder was already

2:30

building a reputation as a hookup app.

2:32

But when Gilbert compared it to

2:34

Grindr, it actually felt more serious.

2:37

So he was on these apps for years and

2:39

went on so many bad dates, you know,

2:41

he wanted to be done. I

2:43

mean dating burnout is

2:44

real. Totally. And then

2:47

in twenty eighteen, he thought he saw the

2:49

light at the end of the tunnel. Hinge.

2:51

It was supposed to have this sophisticated algorithm,

2:54

you know, high quality matches, the

2:56

app pitched itself as designed

2:59

to be deleted.

3:00

And then I think the first five or

3:02

six profiles I've seen were

3:04

people I had already talked

3:05

to. And some of them had already been

3:08

on dates with. Like, the same dates

3:10

that precipitated me switching to

3:12

a new app. Okay. So

3:14

I think I know where this story is going.

3:19

Did you proceed to match with

3:21

them, or did you, like, throw your phone

3:23

away in frustration? It just

3:25

made me sit there for a bit. I was like,

3:28

This is New York. It's one of the biggest

3:30

cities in the

3:30

world. These cannot

3:33

be the only options here.

3:35

He did not throw his phone,

3:37

but he was left with a rage

3:39

induced curiosity. Okay

3:42

cupid, Tinder, Hinge, These

3:45

apps were all marketed differently. They

3:47

were supposed to provide distinct experiences.

3:51

So why did using them feel so similar?

3:54

After doing a bit of research, he realized

3:56

that all of the apps he'd been using over the

3:58

years, besides Grindr, were

4:00

under the same corporate umbrella. Honestly,

4:03

I felt kind of

4:06

like cheated in a way. It's

4:08

like, okay, Tinder has been treated me badly,

4:10

so let me try hinge. Kind

4:13

of like the same way, like, if you have a bad product,

4:16

you're like, oh, I'm gonna buy, like, that competitor's

4:18

product instead.

4:21

Dozens of dating apps and websites,

4:24

all owned by the same company. That

4:27

company is Match

4:28

Group. I'm like, how

4:31

how is this possible?

4:37

This is land of the giants. Match

4:40

Group owns nearly all of the top

4:42

dating apps in the United

4:43

Which means it

4:45

controls the way dating works

4:47

for millions of

4:48

people. That's a lot of

4:50

power for one company to hold,

4:52

and it got all of that power through a

4:54

long campaign of buying up the competition

4:57

and steering our romantic lives. It's

4:59

been a lucrative business for Match Group.

5:02

It knows our most intimate preferences

5:04

and behaviors, and match uses

5:06

that data to better sell itself.

5:09

To build new features that make more

5:11

money from our desire to connect. But

5:14

what about users? As

5:16

Match Group perfects the business model

5:18

of

5:18

dating, Are people seeing better

5:20

results? That

5:22

is a great question, Sengita. Since

5:25

I used to work at Match Group, we thought it'd be a

5:27

good idea to hear your fresh take

5:29

on Match's story. I

5:31

can't wait to hear what you find out.

5:33

Thanks, luxury. The

5:45

dot com boom in the nineties was a bit of

5:47

a wild west, and a young computer

5:49

scientist named Gary Kremman

5:51

wanted to try his luck. He

5:53

had an MBA from Stanford, but his big

5:56

business idea was pretty simple.

5:58

He bought up a bunch of catchy domain

6:00

names. Job's

6:02

dot com, housing dot com,

6:04

autos dot com. He also

6:06

owned sex dot com, and match dot

6:08

com. In nineteen ninety

6:10

five, the first version of match

6:12

dot com would have looked

6:13

familiar. I've seen old markups,

6:16

And, like, they literally look like the classified section

6:18

in the newspaper, which probably don't even

6:20

exist anymore.

6:21

That's Amaranth Tom Bray. He's

6:24

the CEO of Match Group Americas. And

6:27

that was exactly the idea. That

6:29

match and all of those other domains

6:31

would function as a sort of online classified

6:34

space. Cremen created

6:36

a company called Electric Classifieds

6:38

to house his domains, named

6:41

himself the CEO and set

6:43

out to conquer the digital classifieds

6:45

business. And what respectable classifieds

6:48

section didn't have personal ads?

6:50

The only thing was that personal ads

6:52

weren't always that respectable. In

6:55

the men digest, a lot

6:57

of the media was talking

6:59

about the dangers of the Internet. Not

7:02

only that, personal, which were

7:04

mostly newspaper nine hundred

7:06

numbers, had a very bad

7:08

reputation. Fran Meyer

7:10

was a classmate of Kremins from

7:12

Stanford. When she joined electric

7:14

classifieds, Kremen put her in charge

7:16

of match dot com. Personal's

7:19

had an image problem. Myers

7:21

says that the personal ad sections

7:23

of local weekly newspapers often

7:26

featured fake ads that were

7:28

basically scams. Ads

7:30

like I'm interested in a game

7:32

bank.

7:32

Really disgusting, that would,

7:35

though, generate lots of

7:37

phone calls to the nine hundred number.

7:39

Okay? So this is the reason

7:42

why Brussels were

7:44

considered fairly sleazy. Beyond

7:46

that, the Internet was new for most

7:48

people. And for those who are

7:50

already online, meeting someone often

7:53

meant anonymous conversations in

7:55

occasionally sketchy chat rooms.

7:57

So Matt and Meyer had to figure

7:59

out how to clean up the Sleeve's factor

8:02

and begin to build trust. She

8:04

said that they started with the idea that

8:06

men would follow women. And the way to get

8:08

women on match was to make sure the men were serious.

8:10

A great way to do so,

8:12

make them pay to use the service. Subscriptions.

8:16

Once we started charging, the percentage

8:18

of women went up almost

8:20

immediately. And I

8:22

think it's because it sort of qualified the

8:24

guys that were on the service. There

8:26

were a lot of other online personal

8:29

but there was none that was really

8:31

taking a brand focused,

8:33

target focused approach. And

8:35

I think that's why we emerged as

8:38

the winner from really for the very

8:40

beginning. Today,

8:42

we adapt our regular weekly

8:44

feature computer line to

8:46

Valentine's Day. The search for true

8:48

romance, as you probably know, can begin

8:50

just about anywhere. But these days, many of

8:52

those seeking soul mates are

8:54

turning to the Internet. Online

8:56

dating spree brand got the Good Morning

8:58

America seal of approval in the late

9:00

nineties. By then, a

9:02

lot had changed. For one

9:04

thing, more people were using the Internet,

9:06

and culturally, things were

9:08

shifting to. Conversations about

9:11

cyber sex in shows like sex in the

9:13

city and films like you've got

9:15

male were helping to eradicate

9:17

the online dating is dangerous and

9:19

weird stigma. It wasn't enough

9:21

for the owners of electric classifieds.

9:24

Kremen was already gone. He bounced in

9:26

ninety six after butting heads with investors.

9:28

A parade of new CEOs

9:30

did not see a future for online

9:33

dating. In nineteen ninety

9:35

seven, electric classifieds

9:37

sold match dot com. This

9:41

is where Media Mogul bury dealer

9:43

comes in. His company bought Match

9:45

dot com in nineteen ninety nine for

9:47

fifty million dollars. Dillard

9:49

was an entertainment executive

9:51

who'd been the chairman at paramount

9:53

pictures and launched the Fox network.

9:56

In nineteen ninety five, he made his

9:58

last big play in TV and

10:00

bought a bunch of regional stations.

10:01

Then along came the Internet. And

10:04

essentially, we followed our curiosity.

10:06

We're not deal junkies in a sense,

10:08

but there was a lot of curiosity and

10:10

a ton of opportunity. Yeah.

10:13

And so we just follow

10:15

the opportunity.

10:16

That's stillers speaking to fortune magazine.

10:20

Opportunity to him meant gathering

10:22

his acquisitions under one corporate

10:24

umbrella. The name of his

10:26

behemoth was Interactive Corp. IAC

10:28

for short. When IAC

10:30

bot match dot com, the website

10:32

had five hundred thousand users.

10:34

That's roughly the population

10:36

of Minneapolis. But Dillard wanted

10:38

Match to dominate the whole country

10:40

and then the world.

10:46

He did what he did best and went on a deal

10:48

making spree. He bought exclusive

10:50

rights to the personal section of New York

10:52

Mag and BET. He

10:55

partnered with MSN and AOL to

10:57

increase Match's membership base.

10:59

Then there was the marketing. National

11:02

radio and TV spots inviting people

11:05

to come and get your

11:05

love. A very two

11:08

thousand and six partnership with

11:10

doctor Phil.

11:10

Jody. Oh, Jody.

11:13

Sorry. You still daydreaming about

11:15

mister Wright? Yeah. You've got

11:17

personality looks. I Q. You

11:19

just need little guy Q. That's all.

11:22

Visit mashes

11:22

dot com today. A campaign

11:24

for people who still felt like online

11:26

dating was for losers. It

11:29

featured real match users. In

11:34

this ad from two thousand and seven, Danish

11:37

beauty twenty two is wearing an

11:39

evening gown. She's gorgeous

11:41

and glamorous. The tagline for

11:43

the campaign, it's okay

11:45

to look. Whether

11:47

it was Match's aggressive marketing,

11:49

greater Internet usage, a

11:51

shift in pop culture, or

11:53

all of these things, At some

11:55

point, online dating became a

11:57

thing. And match dot com

11:59

was leading the pack. Here's

12:02

Diller again, speaking to Fortune in

12:04

two thousand and nine, about ten years

12:06

after first by match.

12:09

Millions five hundred thousand people pay twenty

12:11

five bucks a month or so -- Mhmm. --

12:13

to do this thing. Now

12:16

and that's a very

12:18

good margin really

12:20

remarkably solid business.

12:22

With a solid business, a good margin,

12:24

and cash flow, IAC

12:26

could use its war chest to level

12:28

up matched outcome into something entirely

12:31

new.

12:31

IAC is a holding

12:34

company, meaning they have stakes in a

12:36

variety of other businesses. And

12:39

so it's like a conglomerate. They

12:41

don't just have one type

12:43

of business.

12:44

David Marcus runs ever

12:46

more global advisers, an investment

12:48

firm that specializes in holding companies

12:50

like

12:50

IOC. Marcus is a

12:53

big fan of the Dillard Way.

12:55

I think IAC as a compounding machine.

12:57

They just do this. They

13:00

put in these tiny things. Spend

13:02

years developing them. Then

13:04

what comes out the other side is a great business

13:06

that can live and stand and thrive on

13:08

its own. Put it

13:10

even more simply. Think about a magician's

13:13

hat. IAC itself is the

13:15

magician's hat. And over the

13:17

years, he's been pulling all these rabbits

13:19

out. But these are rabbits that are multibillion

13:21

dollar opportunities. It

13:23

wasn't enough that Match dot com was growing and

13:26

making money. Dealers still

13:28

wanted to forge a company that would dominate

13:30

online dating entirely. In

13:34

two thousand and nine, match dot

13:36

com became Match Group, its

13:38

strategy to eat

13:40

the competition. That same year,

13:42

Match Group made its first acquisition,

13:45

People Media, for eighty million

13:47

dollars. A little over a year

13:49

later, it acquired Meetic.

13:51

Each of these sites brought something unique

13:53

to the business. People media

13:56

had niche brands, specifically

13:58

social connection websites that

14:00

included our time dot com and black

14:02

people meet dot com. Meadec

14:04

was really popular in France and lip

14:06

match get its tentacles into the European

14:09

market. But the most important

14:11

thing was that these acquisitions

14:13

brought millions more people

14:15

under the Match Group umbrella. To

14:17

match Scoop was growing, but it was also

14:19

wary of the competition. Its

14:21

biggest problem in twenty eleven was

14:23

OkCupid. The

14:26

site was reaching younger Gen Xers

14:28

and Millennials who were curious about

14:30

online dating, but reluctant to

14:32

fork over thirty dollars a month for a match

14:34

dot com subscription. An

14:36

okay cupid was free. It

14:38

liked to rub that in match his face.

14:40

In fact, in those days, it

14:42

cast a lot of aspersions on match.

14:45

Match's marketing claimed that twelve

14:47

couples got engaged today thanks to match

14:49

dot com. OkCupid

14:51

took aim at this brag with a snarky

14:53

blog post suggesting that given

14:55

matches scale, this was kind

14:57

of a rip off. What's

14:59

more compared to OkCupid, Match

15:01

was old school. Its users were

15:03

still building and browsing elaborate

15:05

profiles. OkCupid did

15:07

things a little differently. It

15:10

had users answer tons of

15:12

personality questions to get a

15:14

compatibility percentage with other

15:15

users. It felt scientific,

15:18

but fun. So in the case of

15:20

OkCupid, it was clearly

15:22

attracting, like, a more

15:25

coastal, progressive,

15:27

geeky data oriented person. I'm

15:29

Renith Tombray, CEO of

15:31

Match Americas. So it was a

15:33

very unique passionate user

15:35

base that like to answer questions and like it was

15:37

a very different way of analyzing

15:39

and matching people as well

15:41

as assessing people.

15:43

So instead of competing with OkCupid, match

15:46

just bought it. Match's

15:51

next major target was plenty of

15:53

fish, a free dating site that was wildly

15:55

popular in the mid-twenty ten's.

15:57

It was launched by Marcus

15:59

Friend, a computer scientist

16:01

back in two thousand and three. And

16:03

it became so successful because Friend

16:05

mastered the SEO game. When people

16:07

searched for dating in LA or

16:09

dating in New York, They would see plenty of

16:11

fish at the top of the results.

16:14

Kim Kaplan joined the company in two

16:16

thousand nine, so my first

16:18

week at plenty of fish, we went

16:20

to an online dating conference in

16:22

Miami. And Marcus

16:24

got up on stage and was presented with a

16:26

Darth Vader helmet. And it was

16:28

basically them saying you're gonna

16:30

kill everybody in the industry. In

16:32

a two thousand and nine profile,

16:35

in Inc. Magazine scene, friend talked

16:37

about how he worked one hour a day and

16:39

made ten million dollars each year running

16:41

the site from his apartment. Marcus

16:43

said he would never sell. He

16:45

reiterated that number of times to

16:47

everybody. I'm never selling. I'm never selling. I'm

16:49

never

16:49

selling. Why would he? He was making

16:52

millions and he owned one hundred

16:54

percent of plenty of fish, which,

16:56

by the way, was true to its name.

16:58

It had three point six million

17:00

daily active users in twenty fifteen.

17:03

I'm enough

17:03

Tambre again. I think it

17:05

was number two in

17:07

the country. So that was like, obviously, it

17:09

was huge and

17:12

extremely popular. In, like,

17:14

the smaller towns or

17:16

small town

17:16

America. This was obviously a

17:19

problem for Match Group a

17:21

rival dating platform with huge reach that refused

17:24

to be bought. But

17:26

at some

17:26

point, Friends' position on selling

17:29

had evolved.

17:31

He went to dinner

17:32

with Match Group CEO, Sam Yagan. And

17:34

by the end of it, Match owned plenty

17:36

of fish. Friend left

17:38

with over half a billion dollars

17:41

in his

17:42

pocket. It was

17:45

Match Group's largest

17:48

acquisition to date. With

17:50

plenty of fish in its portfolio, Match

17:52

Group now owned four of the five

17:54

top dating brands in North

17:55

America. This morning, the

17:56

biggest dating websites are getting ready to

17:59

woo, walk Street, Barry Dillard's

18:01

company.

18:01

In November twenty fifteen, Match

18:03

Group went public.

18:04

It was the moment

18:06

when Barry Dillard pulled the rabbit out of his magician's hat

18:08

and showed Wall Street just how much

18:11

online dating was worth. IAC

18:15

had spent nearly one point three billion

18:17

dollars to acquire twenty five brands for

18:19

its dating

18:19

portfolio. Match

18:22

Group's market cap at IPO was nearly three

18:24

billion dollars.

18:25

More and more daters were turning to mobile

18:28

apps to meet people. While

18:30

match owned the most popular mobile dating app

18:32

out

18:32

there, it wasn't bringing in much

18:35

money.

18:35

That was about to change.

18:46

Music

18:47

pop quiz time. Can you identify

18:49

these three sounds? That's an 808.

18:52

It's made by pitching and distorting the

18:54

sound of a kick drum it's now replaced

18:56

bass guitar in countless pop records

18:58

from Drake to Kim Petras. Okay.

19:00

Number two. That's a

19:03

vocal chop. A short

19:05

sample of a singer, cut up, drenched

19:07

in reverb, and made totally

19:09

ubiquitous through the hands of EDM producers

19:11

like SquirrelX. Alright. Last one.

19:14

That's a resize. It's a

19:16

sludgy synthesized baseline created

19:18

by producer, Kevin. And Reese Saundersen in nineteen eighty

19:21

eight. You can hear it in a genre like

19:23

Jungle, Drummond Base, UK

19:25

Garage, and it's even featured all

19:27

over Taylor Swift's latest record. The

19:29

sounds of popular music are always

19:32

evolving. If you want to be able to

19:34

know all of it sounds. The switched on pop podcast

19:36

will break it down for you. I'm Charlie

19:38

Harding, the cohost of switched on pop. And

19:40

if you can name this sound?

19:43

Honestly, you should come on the show and tell us about

19:45

it. Switched on pop comes out

19:47

every Tuesday wherever you

19:49

get podcasts. In

19:57

twenty thirteen, about a third of

20:00

Match Group's users were signing up for

20:02

its products on mobile devices. By

20:04

twenty fifteen, that number was closer

20:06

to seventy percent. Part of this

20:08

was thanks to Tinder, which was created in

20:10

an incubator owned by IEC.

20:13

That relationship eventually evolved

20:15

into Match Group owning the app. Dinder

20:17

still had something of a startup spirit though.

20:20

It's spent the first couple of years

20:22

focused on growth, not

20:24

revenue. That all changed when Match Group

20:26

was preparing to go

20:27

public. I do remember,

20:28

you know, finding out, like, oh, hey, we have

20:31

to monetize I think based upon an

20:33

earnings call. That's

20:34

Jonathan Badin, one of the cofounders of

20:37

Tinder. And I was like, wait,

20:38

we're we're what? It's like,

20:40

okay.

20:41

Tinder had followed a common playbook,

20:43

make the app free, and figure out how

20:45

to make money later. Well,

20:47

it was later. And Match Group

20:49

wanted Tinder users to start paying

20:52

up. Tinder just had to find out

20:54

what users would actually shell

20:56

out for. Jes Carbono

20:58

was one of the people tasked with figuring

21:00

that out. In twenty fourteen,

21:02

she was studying sociology at

21:04

UCLA, and writing about online dating for

21:06

her dissertation. She was

21:09

also using dating apps. Carbono

21:11

had recently matched with Sean Rod,

21:13

Another one of Tinder's cofounders. She

21:16

took it as a sign when he started to message

21:18

her while she was on a boring date a few

21:20

days

21:20

later. I

21:22

was forth while all this was happening

21:24

in the back or live messaging, Sean,

21:27

the guy either thought I had a urinary tract

21:29

infection or a cocaine habit or

21:31

I was wotally uninterested.

21:33

It was obviously the third

21:35

option here. She pitched

21:37

her research and herself And

21:39

soon

21:39

enough, she was working at Tinder's offices in West

21:42

Hollywood.

21:43

One of

21:46

her tasks she says, was to dig

21:48

through the data from Tinder's user

21:50

service. I helped them monetize. I helped

21:52

them figure

21:52

out, you know, what people were willing to

21:54

pay for. She wanted to know, would

21:57

members drop money on a tool that would help

21:59

them stand out from the crowd?

22:01

I'll often were they going to

22:04

use it? Under what circumstances did they

22:06

use it? Were men more likely

22:08

to use it than women? These were all questions that

22:10

I was trying to answer in

22:12

the back of my mind to

22:14

understand the motivation for whether or not we should be

22:16

investing in

22:16

it. Her research was

22:19

fed to teams that developed special features.

22:21

What Tinder calls superpowers.

22:23

There was the boost which

22:25

got your profile seen by more people for

22:27

a limited period. And the super

22:29

like, but you could send someone to show them

22:31

that you really liked them. But

22:34

these features were not

22:35

free. I'm gonna again. We are constantly

22:38

looking at various

22:40

ways to say give users

22:42

a way to enhance their chances

22:45

succeeding on the

22:45

app, and that's something that users

22:48

always willing to pay for. End

22:51

user's dead. They spent millions

22:53

seeking an advantage on the app,

22:55

and on subscriptions, which

22:57

Tinder added next. In twenty

22:59

sixteen, it brought in

23:01

a hundred sixty nine million dollars in revenue.

23:03

And still match wasn't

23:06

finished. There were plenty of other dating

23:08

apps that could pose a threat to

23:10

Tinder's dominance. So

23:12

Match Group went back to its old

23:15

playbook. Competition? No

23:17

problem. We'll just buy

23:19

it. In the mid twenty tens,

23:21

dating apps were mostly the same.

23:24

All the dating apps were Tinder except

23:26

for what's your one little wrinkle.

23:28

That's Tim McHugan, a former executive

23:30

at Hinge. In the early

23:32

years, Hinge was pretty much

23:34

just like

23:35

Tinder. it used social media

23:37

to connect users to friends or friends.

23:39

We were chasing their tails. We had

23:41

a swiping experience very much like theirs. We

23:43

had profiles very much like Fairs. We had a couple little

23:46

things that made it a little bit different and we had a

23:48

little bit of a different ethos and

23:50

all that was well and good, but

23:52

ultimately people saw us as the same kind of

23:54

product and they used us in the same

23:56

way as a numbers

23:57

game.

23:58

But Hinge didn't

23:58

want to beat Tinder. It wanted to

24:01

beat Tinder. Internally, we

24:03

were, like, at war against Tinder. We were, like, when you

24:05

got products to be better than Tinder's,

24:07

They're all about

24:08

amplification. They're all about, like, really,

24:11

like, human

24:11

design. Lucy Mork was a product

24:14

designer at Hinge in late twenty fifteen

24:16

when that war against Tinder

24:18

took

24:18

shape. A vanity

24:21

fair piece on Tinder's role in the rise

24:23

of hookup culture had gone negative

24:25

viral. Tinder, it said,

24:27

was patient zero in the, quote,

24:29

dating apocalypse. Romans as

24:32

we knew it had been destroyed, Tinder

24:34

had reduced it to swiping and bad sex and

24:36

anyone who was serious about finding a

24:38

partner was out of luck.

24:45

This is music from an animated

24:47

video that was part of Hinge's anti

24:49

Tinder campaign. In

24:51

it, a man who looks a lot like Hinge

24:53

CEO, Justin McCloud,

24:55

wanders through a kind of dating hellscape

24:57

with signs to attractions like

24:59

eye

24:59

candy, and one nighter.

25:01

Then he walks

25:04

through a door that says hinge and finds

25:06

a bright paradise of happy couples.

25:09

The campaign was called the dating apocalypse.

25:12

The same name as that Vanity Fairpiece.

25:14

It was not exactly

25:17

subtle. If

25:19

most other apps were just Tinder with a

25:21

twist, Hinge's new plan was to

25:23

be everything that Tinder

25:25

wasn't. To be the anti Tinder.

25:28

We knew that if you can

25:30

really, like, get to the core of

25:32

what young single woman's problem

25:34

is and solve that,

25:36

then you're going to, like, have

25:38

a successful dating product

25:41

And at the time, it was like single millennial

25:43

women, and they were just like so tired of

25:45

hookup culture, tired of

25:47

like not really knowing a man's intentions

25:49

that was the problem that we really set about

25:51

solving. Moore had

25:52

led a

25:52

redesign of Hinge to make it feel

25:55

less tendery. It

25:57

started with dropping the

25:58

swipe. The traditional

26:01

swiping app experience was in

26:03

numbers game. But did lead

26:05

to this, like, culture where

26:08

people weren't coming into

26:10

using a dating app with intention

26:12

of

26:12

really, like, dating and getting to know someone

26:14

and getting into a relationship. What

26:16

we wanted to do was to create a environment

26:20

where actions meant

26:22

what they were supposed to mean.

26:24

We knew we had to, like, slow people down

26:26

to make sure they're really measured with their decisions

26:29

and

26:29

to, like, help get the conversation started.

26:31

While Tinder like to brag about

26:34

its billions of swipes and introductions,

26:36

Hinge used different metrics.

26:39

Good dates per user became the

26:41

app's North Star according

26:43

to Tim McGugan. If we

26:45

were the best at creating dates for

26:47

our users, we would win. In

26:50

twenty seventeen, Hinge's strategy had

26:52

started to work. It was

26:54

gaining users and venture capitalists

26:56

were getting

26:56

curious. They weren't the

26:59

only ones. I'm

27:02

always looking for, like, what's missing. Right? Like,

27:04

is there a need? User need out there

27:06

that's that is not being

27:07

served.

27:07

I'm enough tambray again. Tinder

27:09

was like

27:10

fun and fast and

27:12

easy and like everyone loved it.

27:14

But there was a certain kind

27:17

of user, which I think I I call

27:20

it like more

27:22

intentional, like, millennial. Who

27:24

wanted, like, to spend more time on each profile, be a

27:26

little more intentional about who they want to

27:28

meet, learn more about that person.

27:31

They wanted something cool and fun

27:33

and modern and as

27:34

tender, but a little like slow and

27:37

intentional. In theory, Acquiring

27:39

Hinge would help Match Group remain a

27:41

one stop shop for any online

27:43

dating experience a user could

27:46

want. You know, if you hate Tinder, we've got

27:48

the anti Tinder. So in twenty

27:50

seventeen, Match made an initial investment

27:52

in Hinge. Two

27:55

years later, it bought the whole thing.

27:57

Hinge hadn't beaten

27:59

Tinder. It had joined it, but that

28:02

was good enough from Matt Guggen.

28:05

It was a strong sense

28:06

of validation that what we were doing was

28:09

working and that we had a

28:12

promising future

28:13

And Hinge

28:13

maintained its image as the anti

28:16

Tinder after joining Match

28:18

Group. Hinge wants you to

28:20

meet someone great. Even

28:25

if it kills us.

28:29

Hinge, the dating app designed to

28:31

be

28:31

deleted. But Match didn't buy

28:33

Hinge just to fill out a place in

28:35

its portfolio. It expected the app

28:37

to bring in cash

28:38

too. We

28:39

needed to make

28:42

money.

28:42

And so we needed to show

28:44

a return on investment. So

28:46

twenty twenty was the year when we needed to

28:48

monetize. Good thing there

28:51

was already a playbook for that.

28:53

Tinder's business model was a proven success.

28:56

It had made hundreds of millions of dollars

28:58

selling Super Powers a la carte

29:00

and bundling them into premium

29:03

subscriptions. In twenty

29:05

nineteen, Tinder bought in one point two

29:07

billion dollars in direct revenue.

29:09

It made sense for Hinge to go down

29:11

the same path.

29:12

What you can pay for is a

29:15

more effective or accelerated

29:18

experience of finding your next

29:19

date. Engaging with more people

29:21

at once, getting more attention.

29:23

Hinge debuted a new feature called The

29:25

Rose in twenty twenty. If you saw

29:27

someone you really liked, you could send them

29:30

a rose. Every

29:35

user got a free rose each

29:37

week. The idea was that if you are willing

29:39

to part with your precious rose

29:41

for someone, they'd be

29:43

more likely to hit you back. The

29:45

rose also bumped you to the top of their list

29:47

of people who had liked them. You

29:49

might be buried otherwise. And

29:52

a rose could also get you access to people

29:54

who are the most desirable on the app,

29:56

so called standouts. You

29:59

could buy more roses for three ninety

30:01

nine a pop and of

30:03

course they're cheaper by the dozen. If

30:05

all of this sounds familiar, that's

30:07

because the rose is just Tinder super like

30:10

in cellophane packaging. The

30:12

reception to some of these new

30:14

features, which were after all

30:16

ripped from

30:17

Tinder, was a little bit frosty. Lucy moored

30:20

again. Yeah. It's, like,

30:20

withholding pieces of

30:23

the experience and, like, dangling

30:25

tarot in front of a

30:26

user, but being like, oh, pay us

30:28

to get it. And I think that

30:30

can feel like kind of shitty as

30:33

a

30:33

user. But it seems like these apps are improving

30:36

on taking our

30:38

money and making us spend more time on

30:40

their apps than they are it

30:42

it actually matching us with people that

30:44

we're more interested

30:45

in. Right? That's Jeremy. We're

30:47

only using his first name because he works as

30:49

an app developer and wants keep

30:51

his job. Anyway, Jeremy

30:54

is one of the dozens of dating app users

30:56

we talk to for this series. He's

30:59

skeptical of the effectiveness of

31:01

roses and the other superpowers the app asks

31:03

users to pay

31:04

for. I would

31:05

never pay to send a rose to someone

31:07

on Hinge. And if I did,

31:10

I wouldn't think that they'd be motivated to

31:12

match with me over

31:15

someone else. But Jeremy

31:17

does pay for a hinged subscription.

31:19

It lets him see people who have already liked

31:22

him, and that he says makes

31:24

things more efficient. But

31:26

he's not sure efficiency has

31:28

helped him find what he's really looking

31:30

for. A partner. For

31:33

Jeremy and many other users, It's

31:35

not clear if buying all of this extra stuff

31:37

is working or if it's just

31:39

throwing money into the void. Sarah

31:42

Satyirov is another debtor. She diligently

31:44

uses her free rose every

31:45

week. I'd mean

31:47

upwards. For

31:48

sure, if it's been

31:50

a year, then I'm giving out fifty.

31:53

But I

31:54

do it

31:54

every week. So however long it's existed, I've

31:57

been doing it once a week. One

31:59

person has responded to a rose

32:01

she has sent. A guy who is

32:03

thinking about moving to her

32:04

city. They talked for months before

32:06

he arrived, but in person, the chemistry

32:08

was non existent. Think

32:10

I kept going out them because I was like, on paper, he

32:13

is so perfect. And there's

32:15

gotta be something here that I'm missing. I'm gotta be able to

32:17

unlock the connection here. And there

32:19

just wasn't. And I think that's the thing you

32:21

can't you can't account for and you

32:23

can't app optimize

32:25

for the

32:25

connection. You just can't make

32:28

that a feature. Edison

32:30

Wilkinson also has an hard luck with

32:33

roses. Hinge does that like, oh

32:35

my goodness. We know you'll be attracted to these women and you

32:37

have to, like, You give them the one rows

32:39

you get or pay five bucks for

32:41

a

32:41

rows. Yes. Absolutely. They do

32:43

that for sure.

32:44

you paid to interact

32:47

with those women? Absolutely. I appreciate

32:49

it. Okay. Absolutely.

32:54

And nothing has come from it

32:56

at all. So they

32:59

fool me one shame on

33:00

you. Fool me twice. I need to get

33:03

off the app. But that's

33:05

not what's

33:06

happening. People are staying on the app and

33:09

they're paying on the app

33:11

In twenty twenty, Hinge brought in ninety million dollars

33:13

in revenue. It nearly doubled

33:15

the following year. Hinge

33:17

was making more from each

33:20

paying user too. In twenty

33:22

nineteen, that was around five dollars per

33:24

month. In twenty twenty two,

33:26

it was twenty five. The

33:28

value proposition of these premium

33:30

features is more efficiency, more

33:32

visibility, more likes,

33:35

more more, but do they allow

33:37

users to achieve their romantic

33:39

goals, to find

33:40

partners? I put

33:42

the question to Ammirall Tombray.

33:45

The match group executive. Do you think

33:48

those other features

33:50

do you give people more success on

33:52

the

33:52

app? Yes. They do. I mean, like, the

33:55

obvious proof of that is that they're willing to

33:57

continue to pay for it because they see when they use

33:58

it, they see results. And when

34:01

they see more results, they want to buy it

34:03

again.

34:03

Obvious proof is a stretch. Of

34:06

the dozens of users we spoke to, it's

34:09

seemed that what people were paying for was the

34:12

promise of results. Like,

34:14

spend enough and surely they'll

34:16

meet the right

34:18

person. Eventually, I wonder, are the

34:20

roses helping people find

34:22

love? Is that what the data is

34:23

showing? It

34:24

is. It is. I mean, I think there's a stat on

34:26

the app. Self that, like, once if you send a rose, you have a far chance

34:28

of getting a response and

34:30

getting into a conversation than you don't.

34:35

That's not really what I

34:37

asked. But former Hinge

34:39

exec, Tim McHughgan, says

34:41

Match's moneymaking strategy While

34:43

not perfect is a win for

34:45

everyone. Users wanna go on dates. That's what the project is

34:48

there to deliver. People who pay for these

34:50

things are getting incremental value otherwise they

34:52

wouldn't

34:53

pay for them. The roses that they're buying are

34:54

working, the boost they're buying are working, the

34:56

subscriptions that they're buying are

34:58

working. They're having a better experience

35:01

and more dates. And if you want those things, then you can

35:03

pay for them. You you don't.

35:06

Great. Functionally, I can

35:08

know that we took nothing away from

35:10

the free experience when we introduce

35:11

them. And, you know, a

35:14

listener might believe

35:14

me or they might not.

35:17

I don't know. It's a hard thing

35:19

to prove and who

35:22

trusts big corporations,

35:23

you know. If you assume that

35:25

they're well meaning and good,

35:27

they wanna find you your perfect match so

35:30

that the more they know about

35:31

you, the more

35:34

perfect partner they can show you.

35:37

Eve Gilbert, the lawyer we heard from

35:40

earlier, doesn't think that

35:42

paying more for the apps means

35:44

more

35:44

success. The less benevolent

35:46

interpretation is that they're

35:48

trying to find a way to make

35:50

more money off of you. So maybe

35:52

if they know who exactly you're acted

35:56

to, they're gonna give you something

35:58

that's the store brand

36:00

diversion. So you're like, okay. So the

36:02

real one is out there.

36:04

It's like nibbling at

36:06

the

36:06

edges, but never getting the core. We

36:09

are

36:09

sold on the idea that it's just

36:11

a matter of time until

36:13

that special person use our profile and swipes

36:15

right. And paying for special

36:17

features will supposedly shorten the

36:20

process. It felt like

36:22

someone was trying to figure out

36:24

what I liked, but it didn't feel like they

36:26

were trying to do that to help

36:28

me in any

36:28

way. What

36:29

did you do in terms of that? Like, did that

36:31

change your relationship to the app did you stop using

36:34

them

36:34

and you're pissed about it?

36:36

I I kept using them

36:38

because what's the alternative? Luxmi,

36:47

welcome back. What did you

36:50

think? I take it that Eve Gilbert

36:52

does not pay for dating

36:54

apps. I don't think so, in his final

36:56

year of loss school, he actually

36:58

wrote a paper calling Match Group a

37:00

Monopoly. It's like that moment when you

37:02

realize Procter and Gamble makes all of your

37:04

household products

37:05

or that Rupert Murdoch is the hand behind a lot

37:07

of the news. But then you stop and

37:09

think about dating apps. You're hoping they'll

37:11

help you find other humans

37:13

to connect

37:14

with. And then you think they're run by a multibillion

37:16

dollar corporation trying to

37:18

keep its shareholders happy? That

37:21

can be concerning. Is this

37:24

late stage capitalism at its

37:26

finest? Anything and truly

37:28

everything has a price?

37:29

The thing that strikes me

37:31

is, Our love lives are being steered by Match Group's

37:33

business objectives. So people are paying

37:36

for all of these features and they don't

37:38

really know

37:38

if the money's getting them anywhere.

37:41

Yeah. Being a part of Match Group

37:43

seems to flatten these dating services into

37:45

money making

37:46

machines, but a lot of people feel

37:48

like there

37:49

aren't many alternatives to this world that

37:51

Match Group rules. And Match

37:53

Group truly has its tentacles in

37:55

every niche of the market from

37:58

black singles to

38:00

single parents to folks over fifty. No matter where you

38:02

turn, you're in the match

38:04

vortex, so many different cars. But

38:06

when you lift the hood and take a look at

38:08

the

38:09

engine, It's still

38:11

match group.

38:12

In our next episode, we're gonna

38:14

go one layer deeper into the system.

38:17

look the algorithms that are literally shaping our

38:20

romantic

38:20

futures. How daters are noticing

38:22

the patterns and how the apps work.

38:25

And trying to figure out ways to make them work a

38:27

little better

38:29

for themselves. Special

38:33

thanks to doctor Helen Fisher,

38:35

Mark Brooks, and Jim Osman.

38:38

Archival clips in this episode are from

38:40

CBS

38:41

this morning. Land of the Giants dating games is a

38:44

production of the cut, the

38:46

verge, and the Voxmedia

38:48

podcast network. OLUEA

38:50

KEMI A la Desui is the show's

38:52

producer. Cynthia Battuvisa is

38:54

our production assistant. Charlotte

38:56

Silver fact check this episode.

38:58

Julie Myers is our editor. Brandon McFarlane is our

39:01

engineer and also composed the show's

39:03

theme. Nicole Hill is

39:05

our show runner. Additional

39:08

support from Art Tong. Jay

39:10

Castanakis is deputy editor of

39:12

the Virgin. Nashakkoa is

39:14

our executive

39:16

producer. I'm Sengita Sincurts, and I am Luxury

39:18

Miranda Rogers. If you liked this episode,

39:20

please share it. And follow

39:22

the show by clicking the plus sign

39:25

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