A leading dating app is making it easier for users to get background checks on matches before setting up dates.
What Happened: Tinder, a dating app owned by Match Group Inc (NASDAQ:MTCH), announced the launch of background checks on its platform via Garbo.
Garbo was founded in 2018 and was launched to the public on Wednesday with the announcement. Garbo provides access to public information on incidents of violence and abuse.
Tinder, the world’s most downloaded dating app, will offer access to Garbo through the in-app safety center. Users will get two free background checks and then the option to purchase additional checks for $2.50. Proceeds from the checks will go to Garbo and not Match.
Users typically need a first name and phone number of the person to perform a background check. Garbo will provide “equitable background checks” that target violence and abuse and exclude items like drug possession charges, DUIs and traffic tickets.
“Garbo’s thoughtful and innovative consumer background checks will drive the industry forward while empowering people with critical information to help inform personal safety choices,” Match Group Head of Safety and Social Advocacy Tracey Breeden said.
Match also announced a partnership with the National Domestic Violence Hotline, providing 24/7 access to resources and information.
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Why It’s Important: Match invested a seven-figure sum in Garbo in 2021 with plans announced to integrate the checks into Tinder and other Match owned dating apps.
Tinder is the most downloaded dating app, the top grossing dating app in the world, and a key to Match Group’s user and revenue figures.
In the fourth quarter, Match Group reported revenue of $806 million, up 24% year-over-year. Tinder revenue was up 23% year-over-year in the fourth quarter.
Tinder had 10.6 million paying users at the end of the fourth quarter, up 18% year-over-year. Match Group reported Tinder saw a record number of active users in 2021 and grew active users on a year-over-year basis in each of the four fiscal quarters.
Tinder had revenue of $1.7 billion in the full fiscal year, making up more than half of the $3 billion in full year revenue for Match Group.
MTCH Price Action: Match Group shares were up 12.81% to $98.93 on Wednesday. Shares traded higher after rival Bumble Inc (NASDAQ:BMBL) reported strong earnings and guidance Tuesday after market close.
