An analysis of the U.S. mobile dating app industry from its inception in 2007 to its phenomenal shakeout in 2013 demonstrates that Tinder changed the game — quite literally. As in other cases of industry disruption, dating app upheaval illustrates that newcomers need to compete by transforming noncustomers into customers rather than challenging incumbents for the established mainstream market. Although emerging technologies may allow newcomers the opportunity to overthrow incumbent competitors, our research shows that altering the user experience for an overlooked market segment, not technology, is the key success driver for industry disruption.
Dating apps, including eHarmony, Match.com, and OkCupid, originated as desktop-based dating websites in the dot-com era and transitioned to mobile apps after the iPhone was introduced in 2007. These apps dominated the industry with their first-mover advantages and large user bases. Simply because they had more users, these incumbent platforms offered users a higher probability of finding a suitable partner. They also emphasized matching algorithms, which were continually refined using ample data gathered about their customer bases. New entrants, with small customer bases and lack of historical data, struggled to gain even a slight share of the market as legacy brands dominated the industry until 2012.