Why this new dating trend is wiping billions off apps

Mingling singles spell trouble for dating platforms, another AI company hesitates to ask for investment and mortgage brokers put on notice for not recommending the cheapest loans. Here are five money stories you may have missed this week.

New ways of dating wipe billions off apps

Dating app Bumble is being sold for a fraction of its previous value, as young people in many countries go cold on online matchmaking.

Bumble announced this week it would be bought by a tech holding company for $1.3 billion USD ($1.9 billion AUD).

It's a significant fall in value for one of the world's most recognisable dating apps, which was worth $14 billion USD ($20 billion AUD) just over five years ago.

Bumble announced Ithaca Holdings would pay current owners $6.05 USD per share.

Shares in Bumble previously sunk to $2.50 this month, a fall from $75 when the company first floated on the stock exchange in 2021.

The slump comes as many young singles in countries like Australia and the US say they're getting tired of dating apps and stories of scams and harassment on the platforms.

Such is the digital fatigue that many cities in Australia have seen the return of in-person dating events and opportunities to meet built around activities like run clubs.

Big businesses rocked by class actions

Hundreds of thousands of Aussies could be in line for a financial windfall as two major brands grapple with lawsuits.

Energy company AGL has been taken to court, accused of telling customers their plans were carbon neutral when they allegedly weren't.

Law firm Slater and Gordon is leading the case, claiming customers were misled into paying $1.50 extra per week for the plans over several years.

AGL allegedly told these customers emissions linked to their energy use would be negated through carbon offsets.

But Slater and Gordon claims the carbon credits the company used didn't deliver that outcome.

The new greenwashing allegations come as another class action wraps up.

Multiple outlets reported this week Toyota had agreed to pay $750 million to settle a long-running legal case.

The company had been accused of supplying Aussie drivers with hundreds of thousands of diesel vehicles with faulty exhaust systems.

Second data centre company pauses share market plans

Australian data centre operator AirTrunk has reportedly postponed a plan to sell assets on Singapore's stock exchange.

It comes as global investors become more cautious about AI.

AirTrunk had planned to sell some of its data centre assets in the Singapore through a real estate investment trust to raise $1.5 billion USD ($2.1 billion AUD).

The delay comes a week after fellow Aussie AI company Firmus cancelled plans to list on the Australian stock exchange.

CMC Invest market analyst Henry Fisher says investors are questioning the viability of AI companies and how much money they're worth putting into.

"Firmus' shelved IPO has been a reality check for AI infrastructure companies," he explains.

"I wouldn't read this as a sign that the AI boom is in trouble," Fisher adds.

"But two major listing setbacks in quick succession suggest investors are becoming more demanding about the economics behind it".

In signs of more AI jitters, South Korea's Kospi stock index, which is dominated by semiconductor companies, has fallen more than 35% since June.

Help coming for fed-up telco customers

More internet and mobile issues are costing Aussies money and customers are unhappy with how they're being treated by their telcos, according to new data.

The latest complaint statistics from the telco ombudsman come as service providers face bigger fines for breaking consumer protections.

A Telecommunications Industry Ombudsman report covering the year to July revealed a 63% increase in Aussies bringing attention to issues that had cost them money.

Complaints about unconscionable conduct from telcos, meanwhile, more than doubled compared to the previous financial year.

Lycamobile was singled out for particular scorn, with complaints to the TIO about the budget service provider up by more than 300%.

Though the 832 grievances pale in comparison to the more than 35,000 complaints received about Telstra and Optus.

The data came just before federal parliament passed laws that increase the fines telcos can face for breaking consumer protections.

Advocates have previously said mobile and internet businesses are under-regulated and need to be treated as essential services.

Mortgage brokers told to explain why they're not offering best deals

More than 80% of Aussie mortgages are arranged through a broker, but now the corporate regulator has put the industry on notice.

The Australian Securities and Investments Commission (ASIC) says mortgage brokers aren't always giving customers the cheapest deals.

It found brokers didn't recommend the cheapest loan option in more than 20% of cases.

ASIC admits brokers might have good reasons for pushing clients towards more expensive loans, such as prioritising better features.

But the watchdog said some brokers hadn't been able to supply evidence supporting these suggestions and may not be properly explaining them to clients.

"Consumers should be able to clearly understand why that recommendation delivers greater value for their circumstances," said ASIC commissioner Alan Kirkland.

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