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Source[viii], Source[ix] To capture value from these users, Tinder has introduced three key elements that continue to drive their revenue up.

Tinder Plus, Tinder’s subscription model, at .99/month[x] let’s the user undo an erred swipe left as well as view and swipe right on users outside of the geographical location of the Tinder Plus user, a constraint of the freemium model.

[1] Computerized matchmaking for college students occurred as far back as the 1950s and ’60s with programs that used computer punch cards with student survey responses to find compatible matches.[2] However, the industry did not begin to gain momentum until the launch of in 1995.[3] Now, some estimates suggest that the U. has over 2,500 online dating sites.[4] As a result, the industry is highly competitive.

To be successful, new entrants must have a differentiated offering.[5] 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.