{"id":7191,"date":"2015-12-09T23:28:29","date_gmt":"2015-12-10T04:28:29","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/tinders-business-and-operating-models-itsamatch\/"},"modified":"2015-12-09T23:28:29","modified_gmt":"2015-12-10T04:28:29","slug":"tinders-business-and-operating-models-itsamatch","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/tinders-business-and-operating-models-itsamatch\/","title":{"rendered":"Tinder\u2019s Business and Operating Models #ItsAMatch!"},"content":{"rendered":"

Introduction<\/em><\/p>\n

Tinder is a relatively new company that has thus far proven to be highly effective in driving alignment between its business and operating models.<\/p>\n

Tinder provides a digital platform that \u201cempowers users around the world to create new connections that otherwise might have never been possible.\u201d Although there were plenty of quality platforms to help facilitate communication with people we already know before Tinder, the platforms for meeting new people were largely online dating sites that require the user feel out cumbersome profiles and questionnaires and utilized robust algorithms to aid users in the matching process.<\/p>\n

\"screenshot\"<\/a>
Image 1. Sample questionnaire from a leading online dating website<\/figcaption><\/figure>\n

Tinder’s Business Model<\/em><\/p>\n

Tinder entered the scene in September 2012 with a mobile app that provides value to its users by removing the burdensome signup process of existing platforms, as well as putting the match making power in the user\u2019s control with a simple and streamline interface.<\/p>\n

Users easily signup for a free profile through Facebook, which provides a layer of security from people who try to lie about who they are. Users then select a few pictures from Facebook to be shown on their profile, enter their gender and age, and input a few match making preferences.<\/p>\n

\"Screenshot_2015-12-09-19-46-15\"<\/a>
Image 2. The Tinder application sign in screen<\/figcaption><\/figure>\n
\"Screenshot_2015-12-09-19-48-56\"<\/a>
Image 3. Tinder application’s match preferences<\/figcaption><\/figure>\n

Using the Tinder app is similarly straightforward. Tinder displays a profile picture of an individual that matches your preferences. You can tap into the profile to see more information, and if you\u2019re interested in connecting with individual you swipe right, if not you swipe left. All swipes are anonymous unless two users both swipe right on each other (It\u2019s a Match!). Once matched you will be able to chat with the user drive the relationship in a way you want from there.<\/p>\n

Tinder captures this value in the form of Tinder Plus, its paid service which launched in March 2015. With Tinder Plus users get features such as unlimited right swipes, the ability to choose the location of match searching called \u201cPassport,\u201d and the ability to go back to a previous profile and swipe right instead of left called \u201cRewind.\u201d Tinder Plus costs $19.99 for users over 28 and $9.99 per month for users 28 and under.<\/p>\n

Tinder also captures value in the form of advertisement revenue beginning in April 2015 in the form of a user landing on the advertisers profile while swiping. The user can immediately swipe left or right on the ad or watch the ad and click on links within the ad for more information. Tinder further collects the ad swiping data to provide back to the company.<\/p>\n

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An Aligning Operating Model<\/em><\/p>\n

Tinder has several key tasks it must execute on to properly fulfill its value proposition and capture a portion of the value created:<\/p>\n