In the recent Facebook’s yearly F8 engineer meeting held on Tuesday, CEO Mark Zuckerberg announced a new dating feature being introduced on Facebook.
The recent dating feature will coordinate Facebook users particularly with individuals they aren’t as of now friends with. Facebook clients can create an appealing dating profile — which will not be visible to friends on Facebook.
This announcement was not a good news for other dating sites and companies including Match whose stock plummeted by 22 percent on the news. Its parent organization IAC dropped very nearly by 18 percent.
Match has faced the largest loss in the duration of past 13 years of operation in this market. Not just Tinder, but other dating apps also faced a decrease in their sharemarket prices shortly after Zuckerberg made the announcement.
Prior to this announcement, the stock prices of Match was rising significantly in recent years with almost 84% for the year 2017 and 37% in 2018.
The dating feature is probably going to be a free service on Facebook, challenging other applications such as Tinder and its parent company Match.
Tinder operates by gaining premium, paid highlights, as indicated by Jefferies expert Brent Thill. Thill mentions that this is the primary genuine significant contender following the declaration. He considers this news as a hit to the story [for Match] for the time being.
(Match Stock Prices For 1st May 2018. Source: Financial Times)
IAC CEO Joey Levin said Facebook’s service “could be incredible for US/Russia connections” yet implied space had just been cornered. Match CEO Mandy Ginsberg reverberated the certainty, saying the organization was “complimented” Facebook was entering the space.
Ginsberg, in a statement, expresses astonishment at the planning given the measure of individual and personal user information that accompanies this domain.
(Stock Price Data of Match Since June 2017. Source: Yahoo Finance)
Ginsberg also adds that regardless of any situation, they will keep on engaging their users through product development and persistent spotlight on relationship achievement. They consider this to be superior to any other application in the market.
However, the problem persists for Match-owned apps such as Tinder and other dating apps like Bumble. The new privacy policies of Facebook has restricted most of the information access such as religious and political views.
Even if users can signup through their phone number in Tinder, the app depended upon user profile details integrated to their application to create a background information. Moreover, during April 2018, Tinder users had been facing trouble accessing their Tinder account via Facebook.
Many users tweeted that their Tinder would require a lot of Facebook permissions to login. Also, after allowing access permissions, their account refused to login.
Additionally, with the new dating feature, Facebook aims to connect people not only for short-term dating but give them an opportunity for establishing long-term relationships. And this vision is not projected by Tinder.
“This is for real long-term relationships, not just hookups,” said Mark Zuckerberg. Facebook for quite a long time has been managing the aftermath of the Cambridge Analytica information leak and inquiries of user information security — a firestorm set off by reports that an application designer misused important and personal user data.
Yet, Zuckerberg said amid his address mentioned that the organization will continue building, even while we centre on guarding individuals.
The new dating highlight connects to events and groups on the bigger stage, enabling users with dating profiles to an interface by means of shared interests or regularly went to occasions.
Chief product officer Chris Cos mentions that it reflects the way individuals really date, which is ordinarily at occasions and establishments that they’re associated with,”during the F8 gathering.
Clients can send messages and content just private messages, isolated from Facebook Messenger or WhatsApp.
The new features of Facebook is a real challenge for Match and its dating apps and website. Following the recent events of data privacy breach, Facebook is taking major actions which include changing their privacy policies and security settings, initiating further attributed to keeping people connected and engaged in the platform.
The stock value of Match along with Tinder and its related companies have experienced huge hit since the F8 announcement. If Facebook introduces the new dating feature for free, then it might bring another blow to Match companies revenue stream since they charge customers for enjoying premium services.
Tinder does seem to be in trouble as Facebook might just become the Tinder in time.