Hinge: Limit direct network effects to ensure dating quality

The Hinge platform connects people who are looking for a serious relationship.

To connect a user needs to create a profile, which can include name, pictures, voice recordings and personal questions. For example, one could type an answer to two truths and a lie. Hinge focuses on the social factor with these features. It is closer to real dating, because the users can use these different types of features to create a persona online that represents their character.

Hinge creates value for their users by offering a dating app that focuses on finding a serious relationship as fast as possible, while going on less dates. Hinge captures this with their slogan “the dating app designed to be deleted”.

Through network effects Hinge can improve the user experience by improving their algorithm. Looking at heterosexually interested individuals for example, we would conclude that more male-users would create value for the female users and vice versa. With every new user, the existing users would have more options, which increases the chance of finding the perfect match.Compatible matches are determined by the Gale Shapley algorithm, whose developers were awarded the Nobel Prize in Economics. The app relies on results and information analyzed by machine learning to better understand users’ preferences and make better suggestions accordingly. This is intended to increase the chance of finding an even more suitable match for the next date.(Link)

Hinge can capture value by collecting data. The information a user makes public creates a persona, with information about their interests, humor, looks etc. But using the data could lead to data privacy issues and distrust from customers. Research on fake profiles on dating platforms has also shown that it can be easy to gain access to a victim’s profile. It is easier to create fake profiles on apps with a bigger user base, but this still is an important factor to look out for for Hinge to retain user trust.(Link)

The company offers different memberships for users. The basic membership is free but limits the number of likes you can give per day to eight and users only see likes if they’re mutual. It operates with a freemium model. Subscriptions start at $19.99 for one month, $39.99 for three months, and $59.99 for six months.They also make money through features like roses that customers can use to underline their interest in someone.(Link) By enabling a safe and inclusive environment platforms like Hinge are able to attract higher-paying clients.(Link) In general, men are more willing to pay for dating services than women.(Link) The company offers different memberships for users. The basic membership is free but limits the number of likes you can give per day to eight and users only see likes if they’re mutual. It operates with a freemium model. Subscriptions start at $19.99 for one month, $39.99 for three months, and $59.99 for six months.They also make money through features like roses that customers can use to underline their interest in someone.(Link) By enabling a safe and inclusive environment platforms like Hinge are able to attract higher-paying clients.(Link) In general, men are more willing to pay for dating services than women (if the installed base of women is sufficiently large).(Link)

Several resources have shown that society is looking for deeper emotional connections. This talk shows that there might be an incentive to limit direct network effects between users to create more meaningful and less superficial connections, to not judge a book by its cover but to gain a wholesome picture of someone before swiping.Because Hinge is tackling this and focuses on the authentic match, they will have higher turnover in users. 

This platform could scale in different geographical markets independently as users are interested in finding someone in their location. If competition, like Tinder, already has a solid market share this might create higher barriers to entry to a specific market due to network effects. It is therefore important to allow new users to create a profile easily to lower the switching costs. Additionally, Hinge needs to make sure the users understand the added value they gain by using Hinge, like saving time, less screen time swiping, meaningful connections, to lower the user’s searching costs for finding the right platform.(Link)

Hopefully not on a personal level, but in general dating is a never-ending story which allows sustainability. With new generations there might come new trends, like dating in a virtual space? There are also startups focusing on creating a real-world experience by offering a group match. Long-term these could influence the sustainability of Hinges platform business model. In the short term, I think young adults as a target group and authenticity is a sustainable business model.