Archive — US — techcrunch
Bumble sunsets acquired apps, Fruitz and Official, to cut costs
Bumble is discontinuing its acquired dating apps, Fruitz and Official, to reduce costs and refocus on its primary offerings, Bumble and Badoo. This decision, made during a fourth-quarter earnings call, highlights Bumble's financial struggles and a shift in strategy despite prior commitments to acquisitions. The closure is expected to impact revenue by $12 million as the company attempts to enhance user experience and safety features.
Key points
- Bumble announces the discontinuation of Fruitz and Official apps.
- CEO Lidiane Jones explains this decision is to focus on core businesses: Bumble and Badoo.
- This move contradicts earlier company statements regarding a commitment to acquisitions for growth.
- Bumble faces financial challenges, reporting a 4.4% revenue decline to $261.6 million.
- Closing apps will likely result in a revenue decrease of approximately $12 million.
- Whitney Wolfe Herd returns to leadership to refocus company strategy.
- Bumble plans to launch new features to improve user experience, emphasizing safety and engagement.
Why it matters
- Bumble's shifting strategy mirrors broader trends in the tech industry where companies reassess acquisitions and focus on core products amid financial instability.
- In 2023 and 2024, the rise of dating apps faced challenges related to user satisfaction and safety concerns, echoing Bumble's current focus.
- Competitors in the dating sector, like Match, have also faced scrutiny over safety measures, influencing Bumble's renewed commitment to improving user safety.
Bumble's decision to sunset Fruitz and Official reflects the company's urgent need to refocus amid financial strains while addressing user safety and engagement, marking a critical moment in its evolution and strategy within the competitive dating app market.