Bumble was formed on the idea that women would have the power to initiate conversations. That's changing, following a massive stock decline.
Starting Tuesday, the online dating company will allow all users -- not just women -- to send an opening message to someone they've matched with. That's a complete 180 from the company's founding principle, but could be a necessary shift for a company that's been struggling in recent years.
"Today, our community is asking for more flexibility, less pressure, and more opportunities to create real, meaningful connections and that is what this new experience provides. This evolution isn't a departure from our founding vision, but the realization of it," CEO Whitney Wolfe Herd said in a press release.
Bumble is an online dating platform that was launched in 2014 by Herd, a previous co-founder of the popular dating app Tinder. Bumble has stood out from the collection of other dating apps on the market as it only allowed women to initiate conversations with men they matched with.
The goal of that strategy was to empower women to take control of who they started a conversation with, while reducing harassment from potentially uncomfortable introductory messages from men, something that can be common in the online dating scene. According to a 2023 study by Pew Research, 56% of women under 50 who have used dating sites or apps said they've been sent a sexually explicit message or image they didn't ask for.
While the strategy was a unique one in a world awash with online dating competition, the stock has struggled to gain its footing. Bumble priced its initial public offering at $43 per share on Feb. 10, 2021. The stock is now trading at $2.86 per share.
Management has been open about struggles the business has faced in the past five years. Something that hasn't been unique to Bumble is the overall online dating fatigue that has plagued the space. People have seemingly gotten tired of the same old swiping experience. Bumble and other dating apps have introduced new product enhancements with artificial intelligence at the center to try to improve revenue and paying active users.
Still, on Aug. 6, Bumble reported total paying active users of 3.16 million, a 16% decline from the prior year.
Bumble is hoping a total switch in its strategy will bring the business a much-needed boost. The company said in a statement on Tuesday that 66% of women surveyed on Bumble say they prefer men to send the first message, with many sharing that this would make dating feel less pressured.
Whether or not this strategy shift helps boost Bumble's business is not yet clear. But one thing is certain -- the company needs this to work. The stock has fallen 96% from its all-time closing high of $78.89 on Feb. 16, 2021.
Wall Street seemed hopeful. Shares were up 5% on Tuesday.