The fact that one company repeatedly bought out its competition and now owns, according the the article, 45 dating apps probably has a lot to do with why they suck. Instead of competing by trying to be better, just buy out the rivals, gut them, and make everything worse. As long as the dominant player has lots of capital to buy any upstarts and the regulatory environment lets them do it, it can be an easier way to ma…
By standard Economic theory, that is not a stable strategy, since it incentivises starting new dating apps. It only has to be moderately successful to ensure a profitable exit. Over time, Match would run out of money. Given that Economists overwhelmingly get these things right more than our intuitions, I'm really curious what explanations they have.
Why doesn't it?
If someone is willing to sell you something for $1M - and you can make it user hostile and extract $10M from it - why not keep making that $1M purchase of new dating apps?
As long as Match buys the apps for less than what they can extract from them - it's sustainable.