The Business of Loneliness: How Companies Profit from Isolation

By: Ela Hanif

Loneliness is becoming a major issue in today’s society, and instead of offering real solutions, many businesses are finding ways to profit from it. Whether it's dating apps or AI companions, companies are turning isolation into a business model by providing temporary fixes that don’t address the deeper issue. So, the real question is: are these companies helping people connect, or are they just keeping people dependent on their services?

Turning Loneliness into Profit

Research shows that chronic loneliness can seriously impact mental and physical health, even increasing the risk of early death. But instead of tackling the root causes, businesses have figured out how to monetize loneliness.

Tech companies, for example, are offering companionship through AI chatbots like Replika, while co-living spaces are selling expensive social experiences to people craving connection. Even fitness brands like SoulCycle are promoting a “family” vibe, charging high prices for a sense of belonging.

Dating Apps: The Endless Swipe Cycle

Dating apps like Tinder, Bumble, and Hinge claim to help people find love, but their business model actually thrives on keeping users engaged and, often, lonely. These platforms use algorithms designed to keep people swiping endlessly, offering short bursts of validation that ultimately lead to disappointment.

A 2023 study found that 64% of dating app users felt lonelier after using them for an extended period. These apps make money off in-app purchases like profile boosts and premium features, creating a cycle where users’ loneliness becomes a consistent revenue stream.

Social Media: The Illusion of Connection

Social media platforms promise connection, but they often make people feel even more isolated. Instagram and TikTok, for example, push unrealistic portrayals of people's lives, which leads users to compare their own lives to carefully curated online personas.

Facebook groups and Reddit communities provide a sense of community but can often replace real-life friendships. And now, Meta’s push into virtual reality looks like another attempt to capitalize on people's need for connection, offering digital spaces that keep people glued to their screens.

Subscription Services: Selling Companionship

Several businesses are now turning loneliness into a subscription model:

AI Companions: Virtual friends and AI chatbots offer emotional support—for a price.
Pet Subscription Boxes: Companies like BarkBox market pet ownership as a solution to loneliness.
Wellness Apps: Meditation and self-care apps charge users for access to mental health resources, profiting off people’s isolation.
Friend-for-Hire Services: In some places, you can even rent a friend, family member, or wedding guest for social events.

While these services can offer temporary relief, they don’t address the underlying problem of loneliness or help people build real, lasting relationships.

The Ethics of Profiting from Loneliness

The rise of the loneliness economy raises some serious ethical questions. Are these businesses really helping people connect, or are they just making them dependent on paid solutions? Critics argue that these services create a cycle where people keep coming back for quick fixes, but never get to the deeper, more meaningful human connections they need.

On the flip side, some companies are trying to encourage real-world connections. Apps like Bumble BFF and Meetup focus on helping people form offline friendships, and mental health organizations are advocating for solutions that go beyond just making a profit. The real challenge is whether businesses will prioritize genuine connection or keep focusing on monetizing loneliness.

The Future of the Loneliness Economy

As loneliness continues to grow, companies will keep finding ways to sell "solutions." The real question is: will they help people build authentic relationships, or will they keep profiting off their loneliness?

Ultimately, real connection can’t be bought—it has to be built. The future of social well-being will depend on whether companies choose to empower people to form meaningful relationships or continue trapping them in a cycle of isolation-driven consumption.

References:

1. Johnson, M. (2021, December 6). The Rising Loneliness Economy. Psychology Today. Retrieved from https://www.psychologytoday.com/us/blog/mind-brain-and-value/202112/the-rising-loneliness-economy

2. Entis, L. (2019, May 6). There’s an Epidemic of Loneliness. Businesses Want In. Vox. Retrieved from https://www.vox.com/the-highlight/2019/4/29/18511580/loneliness-co-living-coworking-friend-app-tribe-wework

3. Swipe-Based Dating Applications Use and Its Association with Mental Health Outcomes: A Cross-Sectional Study. (2020, March 4). BMC Psychology. Retrieved from https://bmcpsychology.biomedcentral.com/articles/10.1186/s40359-020-0373-1

4. Why Companies Have a Social Responsibility to Fight the Loneliness Epidemic. Hallmark Business. Retrieved from https://www.hallmarkbusiness.com/insights/article/why-companies-have-a-social-responsibility-to-fight-the-loneliness-epidemic/