INITIAL REPORT
Susan Jennings Kantari, sjk@blueshiftideas.com
Yelp Will Continue to Dominate Online Review Market
Companies: ANGI, FB, GOOG, GRPN, IACI, OPEN, RLOC, TRIP, YELP, YHOO
June 20, 2013

Research Question:
Will a focus on mobile advertising, nontraditional review areas, and international expansion allow
Yelp to continue its growth through the remainder of 2013 despite a rise in competition?
Silo Summaries
Summary of Findings

Yelp Inc. (YELP) will continue to post growth
through the remainder of this year because it
faces little immediate competition in the growing
market of online reviews. Google Inc. (GOOG)
poses the greatest threat to Yelp, but must
improve its updates and customer service.
Facebook Inc. (FB) lacks content.

Seventeen of 19 sources who commented on
Yelp’s future foresee growth for the company.
One Yelp reviewer said growth will depend on the
company’s international and mobile expansion.

Yelp’s mobile platform received positive reviews
from all but two sources who commented on its
app: One Yelp reviewer said the company’s
website was easier to use, and an industry
specialist preferred Facebook’s Graph Search.

Yelp’s review filtering received complaints from
five business owners (including three who
struggle to understand Yelp’s algorithm), as well
as three competitors, six reviewers and two
industry specialists, who described the filter as
unfair or inaccurate.
1) BUSINESSES USING YELP
Yelp will continue to grow throughout the rest of 2013, according to the
six of 10 sources who commented on the company’s future, and will
remain the market’s dominant player, according to five. Six sources were
familiar with Yelp’s mobile app and use it to check reviews and analytics.
Seven of the 10 sources said Yelp lacks a significant near-term threat.
The remaining three said Google will be an issue, including one source
who said Google already has taken some of Yelp’s share. Three sources
reported having difficulty in understanding Yelp’s review filtering
algorithms, but four others said the filter was reliable. Yelp could stand to
improve its social engagement capabilities, to give business owners the
power to filter reviews, and to provide better customer service and a
more transparent filtering system. Also, a better coupon system would be
an easy revenue generator for businesses and Yelp alike.
2) COMPETING REVIEW SITES
All five competitors believe Yelp’s growth will continue through the rest of
the year. For the two sources who commented on Yelp’s mobile platform,
one said the app will spur the company’s growth while the second
conceded that the app is better than their own. No competitors presents
a near-term threat, but Google and Facebook (which will need more
content) could become problems down the road. Yelp stands out from its
competitors through its easy-to-use interface and ample content.
Feedback on Yelp’s filtering system was mixed; three viewed it as
unreliable, one said it was not transparent, and the fifth deemed it as
dependable. One source said Yelp needs a better way to validate
reviewers.
3) REVIEWERS USING YELP
Yelp’s
Growth
for Rest
of 2013
Businesses Using
Yelp
Competing Sites
Reviewers Using
Yelp
Industry
Specialists
Competition
Poses NearTerm Threat
Yelp’s
Review
Filter
Five of nine sources expect Yelp’s growth to continue, one source
believes growth will depend on the company’s mobile advertising and
international expansion, and three had no comment. Of the five sources
who have used Yelp’s mobile app, only one gave a negative review. One
source said Yelp is in an industry leader thanks to its location-based
discovery via GPS. Two-thirds of sources said Yelp has no immediate
competitive threat. Two sources said Foursquare is gaining momentum.
Yelp’s review filtering system is unfair, according to four sources, but two
others believe reviews are largely accurate.
4) INDUSTRY SPECIALISTS
Yelp’s future is mixed among these three sources: One believe Yelp will
continue to grow, one said it will grow during the next six months before
feeling the pressure from competition, and the third believes Yelp’s
growth will be stymied by Facebook. Although two sources rated Yelp’s
mobile app as good, one of the two again believes Facebook’s Graph
Search is a threat. Two sources also believe Facebook and Google are
close on Yelp’s heels, and two said accuracy issues in Yelp’s filter system
remain. Yelp needs to resolve the issue of reviewers posting negative
opinions in hopes of receiving free services, and it needs to focus more
on the reviewer than the review. The third sees needed improvements in
Yelp’s leadership.
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Yelp Inc.
Background
Yelp, which averages 86 million users per month, recently reported earnings that exceeded expectations. Its 1Q13 revenue
increased by 68% year to year, boosted by local and mobile advertising business. Sources for Blueshift Research’s May 31
Whisper said Yelp launched display ads on mobile phones and improved the effectiveness of its app on Apple’s iOS platform.
Sources added that it was aggressively expanding its reviews beyond restaurants and entertainment and to include doctors,
dentists, landscapers, painters, auto mechanics, golf courses and schools. Yelp also was making a considerable investment
in its international expansion, with plans to have this business segment go from 6%, to 30% to 40% of total revenue.
Yelp faces increasing competition from Facebook, whose Graph Search service allows users to scroll through their network of
friends to find recommendations. Yelp also must contend with continuing accusations that it downgrades reviews and ratings
for small businesses that refuse to pay for advertising.
CURRENT RESEARCH
In this next study, Blueshift Research assessed whether Yelp will be able to hold its dominant market position and continue to
grow its popularity in the face of competition from Google, Facebook and numerous startups. We employed our pattern mining
approach to establish five independent silos, comprising 27 primary sources and three relevant secondary sources focused
on Yelp’s new Nearby tab, a possible traffic increase related to Apple’s updated map app, and Yelp’s potential as an
acquisition target:
1) Businesses using Yelp (10)
2) Competing review sites (5)
3) Reviewers using Yelp (9)
4) Industry specialists (3)
5) Secondary sources (3)
Next Steps
Blueshift will monitor Yelp’s efforts to make its filtering system more transparent and trusted by businesses and reviewers.
We also will follow Yelp’s ability to integrate social media into its website and apps, as well as to expand its international
presence. Finally, we will check on Facebook’s Graph Search and its effects on the industry.
Silos
1) BUSINESSES USING YELP
Yelp will continue to grow throughout the rest of 2013, according to the six of 10 sources who commented on the company’s
future, and will remain the market’s dominant player, according to five. Six sources were familiar with Yelp’s mobile app and
use it to check reviews and analytics. Seven of the 10 sources said Yelp lacks a significant near-term threat. The remaining
three said Google will be an issue, including one source who said Google already has taken some of Yelp’s share. Three
sources reported having difficulty in understanding Yelp’s review filtering algorithms, but four others said the filter was
reliable. Yelp could stand to improve its social engagement capabilities, to give business owners the power to filter reviews,
and to provide better customer service and a more transparent filtering system. Also, a better coupon system would be an
easy revenue generator for businesses and Yelp alike.
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KEY SILO FINDINGS
Growth
- 6 of 10 sources expect Yelp to continue to grow; 4 had no comment on growth.
- 5 of 6 who expect growth view Yelp as the dominant player in the marketplace; the remaining source sees a market
need for Yelp’s services.
Mobile Platform
- 6 sources find Yelp’s app beneficial to their business, 3 sources are unfamiliar with the app, and 1 had no comment.
- Business owners use the app to review analytics, check reviews and check the number of views by customers.
Competition
- 7 sources view no significant competitive threat to Yelp. 1 source said Yelp is dominant but that Google has gained
share in the last six months. 1 source said Yelp is used more than competitors but is not necessarily better. 1 had no
comment.
- Google is Yelp’s closest competitor, but 1 source said Google has a long way to go in customer service to catch up.
Yelp’s Review Filter
- Reliability of Yelp’s reviews is an issue for five business owners, including three who struggle to understand Yelp’s
algorithms.
- Business owners also struggle with the experience of one poor review spoiling the lot.
- 4 sources were positive on the review filtering system; 1 reported having the ability to filter out poor reviews, and 3
believe most reviews are reliable.
Aspects That Yelp Needs to Improve
- Yelp needs to facilitate social engagement, have a system to correct “inaccurate reviews,” enable preissued discount
codes, and offer better customer service and a more transparent filtering system.
1. Marketing manager for a large manufacturer of food products
Yelp has been a positive venue for this large corporation, which advertises in various markets. Yelp’s user base and
usability are superior to its rivals’. Google is an up-and-coming threat, particularly with the acquisition of Zagat. Overall,
Yelp’s reviews are reliable, true and accurate, but are more statistically significant if an establishment has more than 30
published reviews. Yelp’s mobile app is a definite selling point, as half of Yelp’s users access reviews from their
smartphones. Mobile will be a boon for Yelp this year.
Growth
 “Mobile will allow Yelp to continue to grow this year.”
Mobile Platform
 “Yelp’s mobile app was a selling point for us. I believe 50% of their users access reviews from their mobile phone,
and the majority of mobile users are looking for food right now.”
Competition
 “Yelp is better than competitors in terms of user base and usability.”
 “In terms of other review site competitors being better than Yelp, not yet. However, I have recently found myself
using the new Google review system because it simplifies the review process by asking about critical experience
areas such as service, food quality and environment versus a singular overall rating.”
 “Google, with the acquisition of Zagat, has been gaining popularity over the past six months and at Yelp’s expense.”
Yelp’s Review Filter
 “Overall Yelp’s reviews are reliable, true and accurate but in specific instances, no. It all goes back to statistical
significance. If more than 30 people write reviews for something, the reviews are statistically significant to 95%
confidence interval; if fewer than 30 people write reviews, the results are not statistically significant and therefore
not statistically reliable.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “We have used Yelp for one year. I use Yelp personally, so I explored advertising opportunities. The initial results
have been positive for specific types of locations.”
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2. Manager of an auto repair shop in the Southwest
Yelp will continue to expand steadily because it has no real competition. The company helped drive customers to this
source’s business, and its mobile features are excellent. However, Yelp’s review filter has tarnished its reputation among
local businesses. Also, Yelp gives little positive incentive to advertise with the company given its high fees and reported
dismissal of businesses’ complaints.
Growth
 “Yelp will keep growing because they’re the big kid on the block. They have dominated the marketplace. ... Everybody
knows it.”
Mobile Platform
 “Yelp’s mobile platform is really great. I go on there to get my analytics, and I see about 30% of the people looking at
us have followed up with a phone call or some kind of action. It’s very useful.”
Competition
 “I don’t know of any real competitors to Yelp, that’s the scary thing. The problem with Yelp is that it’s trying to wear
two hats. Ultimately, I don’t think they can serve both business and consumers. They want revenue from business
owners, but they treat them like pariahs while partying with ‘elite’ reviewers.”
Yelp’s Review Filter
 “For someone to just log on [Yelp] and write disparaging and unfair remarks … leaves a bad taste in your mouth.”
 “I also know a lot of business owners who feel that Yelp is doing a kind of shakedown. Businesses say that if they
don’t advertise, the good reviews start disappearing. One friend who signed up with Yelp said it was the biggest
mistake he had ever made. About 20 reviews of his business went into the filtered section. Another friend had four
good reviews that got filtered out; it just about drove him crazy.”
 “I can’t for the life of me figure out their secret algorithm for filtering out reviews. Yelp can’t explain it, either. I like
their sales rep here, she’s awesome, but I will never advertise as long as they’re using that algorithm. I’m not paying
$350 a month of my hard-earned money for that.”
Aspects That Yelp Needs to Improve
 “The Yelp site itself needs some improvements, at least for businesses. It says local ads will appear on your site, but
I’m seeing ads from other towns and cities.”
 “Social media is about engagement, but the Yelp site doesn’t facilitate that. If someone sends me a Tweet, I get it
right away. But if someone writes a bad review, I have to go to my Yelp site to see it.”
3. Owner of an Oriental rug shop in San Francisco
Yelp has no real competitors and will continue to grow in 2013. It has been good for this source, but its reviewers have
“bullied” many other small businesses. His store stopped advertising with Yelp because doing so provided no additional
benefits, but he does pay a modest amount to display photos more prominently.
Growth
 “Yelp will continue to grow in 2013. Honestly, I can’t even think of any competitors. [IAC/InterActive Corp.’s/IACI]
Citysearch isn’t really producing anything; it’s just a dinosaur in cyberspace. … Google has some reviews. … Yelp has
cornered the market.”
Mobile Platform
 “I don’t know that much about the mobile app.”
Competition
 N/A
Yelp’s Review Filter
 N/A
Aspects That Yelp Needs to Improve
 “One problem is that it’s almost impossible to fix incorrect reviews.”
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Other
 “I feel very mixed about Yelp. It empowers the consumers but it disempowers businesses, so it cuts both ways. Yelp
has been very helpful for me, but some small businesses get bullied.”
 “Yelp has been helpful for the business, which is doing great. We’ve worked very hard and almost all our reviews are
really good. It definitely helps drive traffic. … People say, ‘I read your Yelp reviews and that brought me in here.’”
 “We advertised on Yelp almost from the beginning. They did a very aggressive marketing and publicity campaign,
calling us to upgrade our account. They said, ‘You’ll get a better rating if you advertise.’ We paid for it for about six
months and then quit. There was no value add. Now I pay about $25 extra a month to have a slide show.”
4. CEO of a large residential and commercial cleaning service based in New York City
Only three sites dominate the market: Yelp, Google Places and Angie’s List, and Yelp is the only one that “gets it” from
this source’s perspective. According to this source’s internal analytics, purchasing impression-based marketing with Yelp
has paid off, with the cost of acquisition at $10 with Yelp versus $50 with Google AdWords per customer. However, Yelp
could improve and further monetize businesses by offering a software or another solutions-based advertising product
that would preissue Yelp Deals discount codes to help automate businesses’
discount tracking. Overall, Google Places has tremendous potential to be a stiff
competitor, but it faces customer service issues. Angie’s List is plagued by
I’m not sure there is a real
archaic technology and an outdated look.
legitimate competitor to Yelp.
Growth
Google Places has the potential
 “My assumption [about its international expansion and the acquisition of
to be that, but they are going to
Qype] would be that, like American consumers, there is a need in the
have to do a much better job of
marketplace to get reviews for restaurants, bars and other services.”
providing customer service in
Mobile Platform
order to get to Yelp’s level.
 “The ability to advertise to digital is definitely beneficial [to businesses,
consumers and Yelp]. It’s pretty simple, generally speaking. The Yelp app
CEO, Large Residential & Commercial
and site are what consumers are using in making decision with relation to
Cleaning Service, New York City
services and brick-and-mortar.”
Competition
 “I’m not sure there is a real legitimate competitor to Yelp. Google Places has the potential to be that, but they are
going to have to do a much better job of providing customer service in order to get to Yelp’s level.”
 “Google has tremendous potential to be a competitor to Yelp. The rest are all behind the curve.”
 “The problem [for Google] is they have technology problems and no customer service. For example, we have been
trying to reach out to Google for a year and one half to get our address and
phone number corrected.”
 “If Google {Places] can get it right, then there is a lot of potential because
Yelp is our best digital referral
people go to Google for everything. I’d be willing to pay for some advertising
source based on the analytics
there.”
we looked at as far as a cost of
 “No one I know uses anything besides Yelp, Angie’s List or Google Places. …
acquisition per client. We
Yelp just has a much more modern feel than [Angie’s List]. The younger,
tech savvy of New York City tend to use Yelp more.”
acquire clients for right around
Yelp’s Review Filter
$10 per client. We compare
 “[Yelp] also has a filtering system advantage that they don’t have on Angie’s
[per client acquisition cost] to
List in that you can filter out reviews, negative reviews. The overall interface
our other digital sources,
and technology that has been created at Angie’s List are a little less userfriendly from a business and consumer standpoint. … Its [technology is] just
namely Google AdWords, which
really archaic.”
we are acquiring for a cost of
Aspects That Yelp Needs to Improve
about $50 per client.
 “I can think of at least five ways Yelp can further monetize me as a business
owner. … One example is they have a brilliant no-brainer: their Yelp Deals.
CEO, Large Residential & Commercial
Cleaning Service, New York City
It’s basically Groupon [Inc./GRPN] on Yelp. … However, they don’t have the
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Yelp Inc.
ability to preissue discount [codes] to businesses.”
“If I want to do a deal, a client would have to get the discount code, then email our customer service and then our
customer service would have to track it. … My goal is to automate the business. Yelp could solve that with 10
minutes of basic [IT] development.”
 “By not accommodating that simple need, they have cost themselves $30 for every one of my customer that would
have signed up, and I get over 2,000 Yelp users per month.”
Other
 “We do impression-based marketing [with Yelp], which means basically we pay for a certain number of impressions.
We pay $1,500 per month.”
 “Yelp is our best digital referral source based on the analytics we looked at as far as a cost of acquisition per client.
We acquire clients for right around $10 per client. We compare [per client acquisition cost] to our other digital
sources, namely Google AdWords, which we are acquiring for a cost of about $50 per client.”
 “We’ve paid for this service for about two or three years.”

5. Director of marketing for digital strategy and social media, for a pet hospital
Yelp is far ahead of all possible competitors, according to the source, who works for one of the plaintiffs in a failed classaction lawsuit in 2010 that alleged Yelp tried to extort small businesses for advertising dollars. Lawsuits against Yelp
have been unsuccessful partly because of Section 230 of the Communications Decency Act, which offers a blanket
immunity to all online providers of third-party content.
Growth
 “Yelp will doubtless continue to grow, but I would feel much better if it didn’t.”
Mobile Platform
 N/A
Competition
 “Nothing comes close to Yelp [for reviews]. Google Pages and Google Local do have a major impact, and Google and
[Google’s] Zagat seem like much more honest reviews. Citysearch seems to have died with AOL.”
Yelp’s Review Filter
 “Yelp may claim that they’ve found a way to detect which reviews are legitimate and which are not via their secretive
‘algorithm,’ but that is not the case. We have a very devoted, appreciative clientele. … Many have submitted
favorable reviews, only to have them relegated to Yelp purgatory—the ‘filtered’ review section. … Because we refused
to advertise with Yelp, these 5-star reviews will never see the light of day.”
Aspects That Yelp Needs to Improve
 “I do think that Yelp has engaged in extortion of small businesses. I updated our hours on Yelp for my employer as
part of my social media job. We had a full-on 5-star rating, and all from customers that we knew. Right after I did the
edit, I started getting sales calls from Yelp. They were very high-pressure. They would insinuate there was a way to
manipulate the reviews, that the negative reviews would disappear and the positive ones would move up. We
declined to advertise, and the day after a bunch of our 5-star reviews disappeared into the filter. And again when we
turned down a fresh sales call, we saw maybe a couple dozen more reviews move to the filter within a day or two of
the call. The net effect was lower our rating to something like a 3-star.”
 “It seemed like the mafia: Pay us to protect you, or things are going to get bad. I don’t think a Yelp employee is
deliberately moving around the reviews or anything like that. I think it’s a rule engine. The salespeople may
innocently be pushing a ‘declines to advertise’ button, and maybe that triggers the algorithm to shuffle things around
and the business ends up losing. In any event, we signed onto a class-action suit against Yelp, which kind of petered
out.”
Other
 “I feel very jaded about the whole business. I would rather see anyone get more [market share] than Yelp.”
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6. Owner of a San Diego day spa and salon
This source expects Yelp to continue to grow this year. She initially advertised with Yelp based on its popularity and a
persuasive Yelp sales rep, but has since stopped paying for the service. Overall, she found Yelp to be a positive
experience except for the occasional lousy customer service. She disliked dealing with Groupon, and otherwise has not
worked with Yelp’s competition. She finds Yelp’s reviews to be accurate and reliable, and uses Yelp’s mobile app.
Growth
 “I cannot imagine Yelp not growing. Their salesperson was so incredibly good. He could sell ice to Eskimos.”
Mobile Platform

“I do not remember if Yelp’s mobile app was a selling point, but it sure would be now as everyone is mobile.”
Competition

“I did a Groupon thing once, and I hated that. I really like Yelp. The only problem I had with them is they sold me this
package where I was paying $300 a month to have my listings come up at the top. It sounded really good, but I think
it was a coincidence that as soon as I started advertising I stopped getting any customers from Yelp. It was very
weird, and then I ended up canceling. It was a learning experience. A month after I canceled, business picked up
again. Now I do not pay them anything out of my pocket.”

“I am not really sure who Yelp’s competitors are. I use Foursquare, but I have not gotten any customers from that.
Yelp is the best and, for me personally, it is the demographics that I like.”
“I do not use Yelp myself to find things. A friend of mind used [Cox Enterprises’] Kudzu, and he had a good

experience. But my experience is that every customer I get is just using Yelp.”
Yelp’s Review Filter

“For the most part, the reviews on Yelp are accurate and reliable. Most sane people know that there will be an
occasional bad review because some people are weird.”
Aspects That Yelp Needs to Improve

“The one negative is that it was a little hard with customer service to get a hold of somebody. I had to sneak my way
in to get help from Yelp. You have to bait and switch them, play their game.”
Other
 “I initially advertised on Yelp because it seemed like the only way. Everyone was using Yelp. I felt like I needed to
advertise, and I needed another source of traffic.”

“For the most part Yelp has been a positive experience for me, but clients do not always turn into repeat customers.
People want it within the next 45 minutes, and they are all looking for deals.”
7. Owner of a Mexican restaurant with two locations in Charlotte, NC
Yelp is likely to remain the No. 1 consumer review aggregate site for the foreseeable future, according to this source who
purchased one of his eateries partly based on the positive Yelp reviews it had received. Yelp’s staying power will depend
on its ability to “stay true” to its existing review model. Its mobile app and related advertising do not seem extremely
innovative. That said, its tie-in with mobile maps does help this source’s sales. Google is Yelp’s closest competitor overall
but has issues with update bugs.
Growth
 N/A
Mobile Platform
 “I am not too familiar with it.”
Competition
 “I don’t see anyone out there yet that can match Yelp reviews. Google seems
to really try to put a focus on the reviews, but their business owner platform
has too many bugs at the moment that you cannot keep up with updates to
your own business. If they get more popularity and they screen reviews for
one-timers or just liars, they might get close to Yelp.”
 “I don’t think there are any other review sites more reliable and that can
I don’t think there are any other
review sites more reliable and
that can create more impact on
a business as Yelp.
Owner, Mexican Restaurant
Charlotte, NC
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create more impact on a business as Yelp. For the coupons, check-ins, discounts, etc. there are better options out
there. For coupons you’ve got LivingSocial; for check-ins you’ve got Facebook; for discounts you’ve got Google or
Foursquare. But Yelp is the one at the top for reviews.”
 “[IAC’s] Urbanspoon got some ground, but they are more focus on the voting
scale of a number.”
Yelp is the site that has the
Yelp’s Review Filter
 “They are [reliable reviews]. You can tell that reviewers are passionate, and
most impact on my sales
Yelp screens the reviews. When they are unreliable, they get pushed to the
compared to any others, such
spam side. … The majority the reviews do represent the true quality of a
as Yahoo, Google, etc. If you
business.”
look for a place on your iPhone,
 “Yelp stands out from other review site by the quality and quantity of the
reviews and how much new customers rely on the reviews to go visit, say, a
it comes up with a Yelp
restaurant.”
information section.
Aspects That Yelp Needs to Improve
Owner, Mexican Restaurant
 N/A
Charlotte, NC
Other
 “Yelp is the site that has the most impact on my sales compared to any
others, such as Yahoo[! Inc./YHOO], Google, etc. If you look for a place on your iPhone, it comes up with a Yelp
information section.”
 “I post Yelp deals on both of my locations. I price them at $15 for $10; I sell about five a week for each location. It’s
not a lot of volume. I just see it as a service/benefit for my costumers that follow us on Yelp.”
 “I definitely recommend Yelp. … It helps attract a niche clientele that is very aware of local business and tries to
support them; at the same time that clientele requires high quality and value.”
8. Owner of a popular small restaurant in the San Francisco Bay Area
This source advertises on Yelp, but plans to discontinue it soon because she has not see any real return on investment.
She appreciates having an account manager; prior to advertising with Yelp, the company would ignored her calls for
assistance. But even with advertising, she has been unable to get false or misleading reviews removed. She does not
know any competitors that could take share away from Yelp, which she uses daily as a consumer but loathes as a
business owner. The stereotype of Yelp reviewers—entitled, affluent 20-somethings—does not help its overtures to small
businesses.
Growth
 N/A
Mobile Platform
As far as Yelp goes, I don’t
 “I use Yelp’s mobile app all the time. … Yelp sends me an email every week
know if anyone can really
letting me know my user views, bookmarks and so on. It’s somewhat handy.
As a new business, it’s good to see those numbers increase.”
compete with them. Yelp has
Competition
such a stronghold on the
 “I know there’s Tablehopper, which really accentuates the positive.
Internet; it’s really dominating
OpenTable [Inc./OPEN] is somewhat the same. ... As far as Yelp goes, I don’t
the market.
know if anyone can really compete with them. Yelp has such a stronghold on
the Internet; it’s really dominating the market.”
Owner, Popular Small Restaurant
Yelp’s Review Filter
San Francisco Bay Area
 “I don’t think Yelp reviews are that reliable, and I don’t get their secret
algorithm at all. We got back up to 4 stars. But there’s a lot of erroneous
information in the reviews, people quoting prices that are higher than they are and so on. … I would like Yelp better if
reviewers had to use their real identities. It would be exciting to ‘Yelp’ the Yelpers.”
Aspects That Yelp Needs to Improve
 “As an individual, I use Yelp all the time. I like the fact that I can check out places and see what’s in the
neighborhood. As a business owner, I totally hate it. When we moved my old business, I went on Yelp to give
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Yelp Inc.
everyone the new information, and it wouldn’t let me change the address. I was locked out of the account. It would
say, ‘Are you the business owner?’ and I’d click ‘yes,’ but it wouldn’t let me write anything in that field. I had a terrible
time. I spent a month calling Yelp and trying to get it fixed, and nobody would reply back to me. In the meantime at
least one customer wrote in to complain and say, ‘Why didn’t you tell us the place is closed?’ It was so frustrating.
Finally my partner said, ‘Hey, my workplace advertises heavily on Yelp; let me take care of it.’ She made one phone
call and the next day it was fixed. It definitely pays to play.”
Other
 “I am doing Yelp advertising now because I basically wanted to be able to have an account manager to talk to when I
had problems, and also to not have competing restaurant show up on my page. But paying $300 a month to do that
is kind of crazy. It’s like you’re dealing with the mob. Restaurants have a higher revenue stream than some places …
say, a laundry place, and there’s no way they can afford that.”
 “I’m going to cancel the advertising soon because it’s expensive and it’s not really doing that much for us. It’s good
to be able to talk with someone instead of just sending a message into the abyss, but the problems don’t really get
solved.”
9. General manager at a Los Angeles-area restaurant
This restaurant has been advertising on Yelp for three months, and so far the efforts seem to be gaining some attention.
The source does not like Yelp as he said anyone can slam a business and essentially close its doors, which affects many
people. Still, Yelp is the go-to site because of its sheer number of visitors. People are increasingly using their smart
devices, which could be a boon for Yelp down the road.
Growth
 N/A
Mobile Platform
 “Yelp’s mobile app really was not an issue in our advertising decision-making.”
Competition
 “I cannot say Yelp is better than its competitors, but it is used by more customers.”
 “I am not sure which review sites are gaining in popularity because I try to ignore them as much as I can. But
nowadays I am forced to spends hours a week managing my Yelp reviews. It really takes away from running the
business.”
Yelp’s Review Filter
 “In terms of accurate and reliable reviews, this is the biggest problem for any business. Yelp does not validate any
reviews. Anyone can start a false account and slam your business. … Yelp has made everyone an expert. But what
people do not realize is how many lives get affected if businesses close. Real people lose their jobs.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “We have been advertising on Yelp for three months. We want to flow more traffic our way. … According to Yelp’s
stats, we are getting more looks.”
10. Owner of a laundry service in South Boston
This source uses Yelp, among several other free review sites such as Yellow Pages, and finds that Yelp’s review volume
makes it the standout choice for his business. He does not find paying for a site, such as Angie’s List, to be worth the
investment. However, he recommends Yelp revisit its review analytics to scrub isolated negative reviews from otherwise
well-reviewed businesses.
Growth
 N/A
Mobile Platform
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“I use it on my iPhone all the time to see if we have any new reviews. I check in once a week, and then I individually
respond to each review.”
Competition
 “For my business … Yelp is a clear-cut choice.”
 “When it comes to reviews, I really don’t see any other site in the forefront of the customers’ minds than Yelp. Most
people come to Yelp and that’s where we get most of our traffic. … I’m happy with that.”
 “We have pages on everything except Angie’s List because they make [businesses] pay. Google Places most people
use, too. … Google reviews are separate, but on my business page on Google I believe they link to my Yelp reviews …
because most people don’t review [on Google.]”
 “It doesn’t pay to have [a paid] business page. We do just fine with the free
ones. We use [Reply! Inc.’s] MerchantCircle, Yellow Pages, [SuperMedia
Inc.’s] Superpages, etc.”
When it comes to reviews, I
Yelp’s Review Filter
really don’t see any other site
 “I can understand how some businesses have five reviews and how only one
in the forefront of the
review from a few years ago that is bad would drag them down.”
 “Sometimes the reviews on Yelp, even though they are from real people,
customers’ minds than Yelp.
may be a little off the hip and not really representative of the business.”
Most people come to Yelp and
Aspects That Yelp Needs to Improve
that’s where we get most of our
 “Overall, I can’t say Yelp is a bad experience, but there are a few frustrating
traffic.
nuances. There are a lot of good reviews they don’t display. … In the really
early stages we had some problems that needed ironing … so we received a
Owner, Laundry Service
1-star review that first year. I know they want a well-rounded review of a
South Boston
business, but having old reviews like that always appear in the top 10
reviews is just frustrating.”
Other
 “I have a Yelp business account. It’s free. … I can access my business and see how many people are leaving reviews
and what they’re saying. I don’t pay for any ads or other services. Right now it’s not something I’m interested in.”
 “Yelp Deals are free to so I have the standard $5 for $10 Yelp Deal that continuously runs. Only a handful of
customers per month purchase that, so it’s somewhat good [in terms of boosting sales].”
 “Every six to eight months, [a Yelp salesperson] will call to see if we have any renewed interest [in paid ads].”
 “Yelp is something that is very useful to my business. I’m happy with them overall.”

2) COMPETITOR REVIEW SITES
All five competitors believe Yelp’s growth will continue through the rest of the year. For the two sources who commented on
Yelp’s mobile platform, one said the app will spur the company’s growth while the second conceded that the app is better
than their own. No competitors presents a near-term threat, but Google and Facebook (which will need more content) could
become problems down the road. Yelp stands out from its competitors through its easy-to-use interface and ample content.
Feedback on Yelp’s filtering system was mixed; three viewed it as unreliable, one said it was not transparent, and the fifth
deemed it as dependable. One source said Yelp needs a better way to validate reviewers.
KEY SILO FINDINGS
Growth
- All 5 sources believe Yelp will continue to see growth through 2013.
Mobile Platform
- Of the 2 who commented, 1 views the app as an area for growth while 1 said it is better than their own app.
Competition
- No sources see a near-term competitive threat to Yelp, but 2 sources see longer-term threats from Google.
- Facebook lacks enough content to be a viable threat.
- Yelp’s strength are its usability, interface and content.
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Yelp’s Review Filter
- 3 sources said Yelp’s filters are unreliable, and 1 said it needs to add transparency to its filtering process. The
remaining source said the filters are reliable.
Aspects That Yelp Needs to Improve
- 1 source said Yelp needs a better way to validate reviewers.
1. Vice president for a large review site that competes with Yelp
Yelp will continue on its growth spurt. The marketplace is huge and holds plenty of room for growth of its many players.
Mobile traffic is rising dramatically and should be a significant source of growth for Yelp. This source’s business has more
than tripled its membership in the past year, and reviews have more than doubled over the past two years. He said his
company’s reviews are more accurate but that Yelp has an easier-to-use interface.
Growth

“Most definitely Yelp will continue to grow. … They are fueling international growth.”
“People always have needed to find the local service providers, and those transactions can be very challenging. …

There is a lot of opportunity to improve that local commerce. Companies like Yelp, [ReachLocal Inc.’s/RLOC]
ClubLocal and ours are coming up with tools and technology that will make it a much more efficient and successful
transaction.”
“There are a lot of companies … seeing this as an untapped opportunity.”

Mobile Platform
 “Mobile traffic is increasing so dramatically, and that is where a lot of these
If I had to give you a reason as
local services tend to advertise. I do believe that mobile will be a significant
to why Yelp is better than us, I
source of growth for Yelp.”
would lean more toward
Competition
usability, the user interface.

“I would not say anyone is taking share from another one; the space is so
Yelp is easy to use.
large and is actually growing. Some sites are so new so they are reporting
exponential growth. … In the last two years … we tripled our membership
VP, Large Review Site
and nearly tripled the revenue of the company.”
Yelp Competitor

“I have found Yelp’s site to be relatively easy. We are both structured
similarly in that we are very market-based.”

“We are constantly evolving our user interface so we can minimize the number of clicks. … We are getting to the
point where we are encouraging and promoting e-commerce through our site.”
 “We are diverging more from Yelp because our strategy is outcome-based. We are focused on the outcome of that
local service transaction. Yelp wants to be the online Yellow Pages.”

“If I had to give you a reason as to why Yelp is better than us, I would lean more toward usability, the user interface.
Yelp is easy to use.”
“We tend not to compare ourselves to Yelp because we view our business being very different, typically from the

types of transactions we do. A lot of people look to and think about Yelp with regard to social-oriented transactions:
restaurants, bars, clubs. Yelp is a free service available to everybody. We are focused on high-cost-of-failure
transactions.”

“When it comes down to who our competition is, our competition is you—what you say to your next-door neighbors,
coworkers or family members. We are competing with word-of-mouth.”
“There are a lot of new sites and things coming up like ClubLocal. [IAC’s] HomeAdvisor was recently rebranded [and]

previously was known as ServiceMagic. They are trying new things and gaining some momentum. Yelp is trying to get
more into that service area.”
Yelp’s Review Filter

“In terms of accuracy of reviews, that is where the difference between our models come into play. You do not know
the motivation between any random individual submitting a review to Yelp. … We have a paid membership base. …
We have technology and algorithms to review the reviews. … We do not allow anonymous reviews, and the service
provider knows who is submitting the review. They know it is a member.”
Aspects That Yelp Needs to Improve
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 N/A
Other

“Yelp does not seem to be focused on the consumer outcome as much as just being a listing service for local service
providers.”
2. Interim CEO for a competitive review site
Yelp will continue to grow this year despite having a few growing pains. Businesses view Yelp as being more customerfriendly than business-friendly, and fear getting negative reviews on the review site. Still, they see Yelp as the market
leader and realize its potential. Yelp has a better user experience and a top-notch design and development team. It also
has content, which puts it ahead of Facebook. Other competitors are niche sites like Urbanspoon, ZocDoc and Zillow Inc.
(Z), but Angie’s List is not a major rival to Yelp. No site has 100% accurate reviews, but Yelp has a leg up through its
sheer number of reviewers and its good mobile app.
Growth
 “Yelp will continue to grow this year.”
Mobile Platform
 “Yelp’s mobile application is great. … It is sad to say it is better than ours.”
 “Your mobile device has limited real estate. … The key to mobile is basically
With Yelp there is a good
a subscription service.”
chance they have that content
Competition
you are looking for, and that is
 “Yelp has a better user experience in general through their technology and
Facebook’s challenge right
features than our site does. Obviously, they have a much bigger team, more
now. Facebook has a cool idea
funding, top-notch people, designers and developers where they can build up
those features.”
to build the social into it, but
 “With Yelp there is a good chance they have that content you are looking for,
they are lacking the content.
and that is Facebook’s challenge right now. Facebook has a cool idea to
build the social into it, but they are lacking the content.”
Interim CEO, Competitive Review Site
 “Yelp has been building more social features.”
 “Yelp and Google are our biggest competitors today.”
 “Urbanspoon is gaining in momentum and popularity. … But Yelp is still growing.”
 “Avvo, ZocDoc, Zillow and Trulia [Inc./TRLA] are niche sites. If I need a real estate agent, I will take care of my real
estate needs on Zillow. If I need a lawyer, I will visit Avvo.”
 “Facebook has a huge potential to disrupt everything with their Graph Search.”
 “Unfortunately to some extent, one of our review sites is losing share and Yelp is still growing. A lot of other
companies like MerchantCircle are losing out. [IAC’s] Insider Pages … is an example of a company losing share.”
 “There is the audience market share and the business-paid market share. On audience engagement, we are losing
some market share to Yelp and others. But at the same time I am seeing more Yelp customers sign up for our paid
subscriptions than in the past.”
 “Angie’s List is paid by consumers, and I do not see much competition from them. Consumers we talk with do not
want to pay for subscriptions.”
Yelp’s Review Filter
 “On the consumer side we focus on [a different demographic than Yelp]. On the business side, which is businesses
wanting to advertise with us, we are more friendly toward businesses than Yelp. There is a perception that Yelp filters
out reviews, and businesses do not like that. … I do not think that is true, but that is the perception that businesses
have. They definitely realize that Yelp is the market leader, but they may also feel like it is a double-edged sword: If
they get on Yelp and get a negative review, how will that affect their business?”
Aspects That Yelp Needs to Improve
 “Yelp could bundle in their advertising with a model … giving better tools and features to certain businesses.”
Other
 “I do not think any reviews on any site are 100% accurate. … Yelp and Facebook are the most trusted, with a 9 out of
10.”
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
“Yelp is the most accurate because they really engage. … They have a lot of tools because they get so many reviews.
If someone says they did not like the tacos at a restaurant, other people will speak up. Generally, you get a good vibe
for a place, and that makes it accurate because of the sheer volume of reviews.”
3. President at a customer review company
Yelp is in a league of its own and lacks a direct competitor. Google is the only possible exception based on its command
of SEO algorithms and its ability to sway related rankings through reviews. Yelp’s expanded advertising products are not
necessarily a draw for businesses, which are largely comfortable with the free accounts and associated reviews.
Growth
 “If Yelp [through its advertising efforts] looks too commercial, it’s going to be a turnoff for the readers because then
people think it’s a rigged game. … They have a balancing line they have to walk. In some context Goggle is similar,
but it has not really aggressively monetizing reviews.”
Mobile Platform
 N/A
Competition
Don’t worry about competition.
 “Don’t worry about competition. Competition is not relevant for Yelp. The
only possible relevant competition for Yelp for the next 12 months is,
Competition is not relevant for
honestly, Google. That’s about it or if Facebook decides it wants to be in the
Yelp. The only possible relevant
reviews in a big way. … I’m not sure the data I’ve seen on Facebook usage
competition for Yelp for the
tells me [they’re a direct competitor to Yelp]. People go to Facebook to
next 12 months is, honestly,
interact with friends and family. They don’t use it to do product reviews or
Google. That’s about it or if
social shopping.”
 “Google uses their third-party reviews as a ranking signal and uses internal
Facebook decides it wants to
reviews to give a slightly stronger ranking signal.”
be in the reviews in a big way.
 “There is not much out there that competes [in terms of overall content] with
… I’m not sure the data I’ve
Yelp. The only one that would kind of come close would be Angie’s List, and
seen on Facebook usage tells
it’s the other side of the business model. They have a certain percentage of
me [they’re a direct competitor
their revenue that is ad-based.”
 “Don’t underestimate [Yahoo CEO] Marissa Mayer. She is the real deal. She
to Yelp]. People go to Facebook
knows what she talking about [in terms of acquiring Alike Mobile].”
to interact with friends and
Yelp’s Review Filter
family. They don’t use it to do
 “People trust the content.”
product reviews or social
Aspects That Yelp Needs to Improve
 N/A
shopping.
Other
President, Customer Review Company
 “In terms of [Yelp] in the United States, they are most definitely a powerful
destination source. They have a community that is dedicated and is strong.”
4. Vice president of operations for a competitive review site
This organization’s review site is fairly new and lacks Yelp’s name recognition, but the source views the Better Business
Bureau as her main competitor. Yelp is eating away at Angie’s List. The source believes reviews on Yelp are sometimes
planted and that legitimate reviews may be removed. She does not use Yelp’s mobile app.
Growth
 “Yelp is gaining in momentum and popularity, at Angie’s List’s expense.”
Mobile Platform
 “I do not have Yelp’s mobile app.”
Competition
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 “Yelp is better than our site due to name recognition.”
 “Our biggest competition in the marketplace is the Better Business Bureau, due to its 100-year-old brand.”
Yelp’s Review Filter
 “Reviews on Yelp are not reliable, and there are planted reviews. Legitimate reviews are possibly removed without
justification.”
Aspects That Yelp Needs to Improve
 N/A
5. Dwight Zahringer, founder and CEO of TruReview
Yelp will continue to grow this year because it has a tremendous marketing budget, but it also will have to pay more for
the additional labor associated with expansion. Yelp also needs more transparency a better way to validate customer
reviews. Allegations of extortion have left Yelp with a major PR headache, and it should pay close attention to Google,
which could pose an enormous challenge if it devotes more resources to reviews. Yahoo and Microsoft Corp.’s (MSFT)
Bing also are potential threats. TruReview itself has a competitive advantage in that it validates every review.
Growth
 “Yelp will continue to expand in 2013 because they spend large, disparate amounts of money on marketing. But with
that expansion, they will also have large costs related to retention. It’s unclear what kind of money they will actually
be making.”
Mobile Platform
 N/A
Competition
 “Yelp needs to watch out for Yahoo. It’s got a very large directory and its own established brand. Bing as well, and
anyone who tries to integrate with Facebook because it’s very, very social. But Google is the one they really have to
watch out for, even more than Yahoo. They already serve up search results and maps and have an enormous public
presence.”
 “My company … is competing with Yelp in some ways. To an extent, we’re serving the constituency [small
businesses] they don’t like and don’t serve. We don’t have a secret algorithm or filter; we’re creating a software tool
for businesses that they can use to create a community and manage their own reviews. We’re promoting a respectful
atmosphere all around, with the idea that businesses should wake up and listen to their customers. The focus is on
transparency and integrity.”
Yelp’s Review Filter
 “Yelp may need a filter, and it doesn’t want to tell everyone about its secret sauce because then people will try to
game the system. But it really needs more transparency and a better way to do verifications.”
Aspects That Yelp Needs to Improve
 “Clearly, Yelp has a public relations problem when you have a company [executive] come out and declare that Yelp
isn’t in the extortion business.”
 “Do I find Yelp reviews are accurate and reliable? Yes and no. People can be incentivized to [abuse the system] if not
from here, then from other countries. There needs to be a better way to validate reviewers.”
Other
 “TruReview is very different from Yelp. With TruReview, a customer uses the scheduling software to make an
appointment with a business and the software automatically solicits a review from that customer after the service.
Since the reviews are automatically validated as coming from real customers, it eliminates the problem with spam,
shill or [malicious] reviews from competitors. Businesses can embed the reviews on their sites and use customer
feedback to improve things. Consumers can also see bios of all the employees, so you get an idea of who is going to
show up and what to expect. It’s really promoting transparency at all levels. … We’ve had a nice acceleration over the
past six months. It’s gaining popularity, and it feels like we’ve really hit the nail on the head.”
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3) REVIEWERS USING YELP
Five of nine sources expect Yelp’s growth to continue, one source believes growth will depend on the company’s mobile
advertising and international expansion, and three had no comment. Of the five sources who have used Yelp’s mobile app,
only one gave a negative review. One source said Yelp is in an industry leader thanks to its location-based discovery via GPS.
Two-thirds of sources said Yelp has no immediate competitive threat. Two sources said Foursquare is gaining momentum.
Yelp’s review filtering system is unfair, according to four sources, but two others believe reviews are largely accurate. One
believes frequent posters are rewarded by not having their reviews filtered. Another believes Yelp should better regulate its
chat rooms.
KEY SILO FINDINGS
Growth
- 5 sources expect Yelp to see continued growth. 3 had no comment on Yelp’s growth. 1 believes Yelp’s growth will
depend on its mobile advertising and international expansion.
Mobile Platform
- 5 sources had positive reviews of Yelp’s mobile app. Only 1 had a negative review, saying Yelp’s website was easier
to use. 3 do not use the mobile app.
- Yelp’s app is easy to navigate. 1 source said Yelp is an industry leader in using location-based discovery via GPS.
Competition
- 6 of 9 sources see no immediate competitive threat to Yelp.
- 2 sources noted Foursquare has gained momentum.
- Other competitors listed by reviewers are Foursquare, OpenTable, TripAdvisor Inc. (TRIP) and Google.
Yelp’s Review Filter
- 4 sources view Yelp’s filtering system as unfair, 2 said the reviews as largely accurate and 2 had no comment. 1
believes frequent reviewers do not have their posts filtered.
Aspects That Yelp Needs to Improve
- 1 source believes Yelp should better regulate its chat rooms to avoid extraneous postings.
1. 22-year-old college graduate and Hollywood intern
This source uses Yelp daily for reading and posting reviews, and believes Yelp will continue to grow in popularity and that
it is the “Google” of the review world. Yelp has little or no competition, but the source also uses Foursquare and
TripAdvisor. The latter offers better hotel reviews.
Growth

“Definitely Yelp is gaining in popularity. I have been using Yelp for about seven years. I started using it when it came
out, and it slowly grew. I think Foursquare would be the next most popular site, but a lot of review sites are being
affected by Yelp because Yelp is another Google.”

“Yelp’s focus on mobile advertising, new review areas and international expansion will allow the company to keep
growing this year.”
Mobile Platform

“I like Yelp’s mobile app for the most part. It is easy to navigate, and you can check in some places and get free
stuff.”
Competition

“I do not think Yelp has a big competitor. I know of a couple websites like Foursquare and OpenTable. Yelp has
everything you want and even has deals.”
“I have also gone on Foursquare.com. … I do not really like that site. Yelp is much easier to use, and that is another

reason why I like it. … But TripAdvisor is much better than Yelp for hotels.”
Yelp’s Review Filter
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“Yelp also does this thing where they filter the reviews, but some of the really good reviews are filtered and it is
unfair.”
Aspects That Yelp Needs to Improve

“Yelp has chat rooms where you post a question and people answer, and every time someone posts a serious
question, there are always these idiots giving stupid answers. I cannot stand that.”
Other

“I use Yelp on a daily basis. If I am craving Chinese food, I would type it in and Yelp will tell me the closest Chinese
food nearby. Yelp offers ratings. If I like the review, I go there and I purchase their food. And if I do not like the review,
I do not go.”
 “I post on Yelp every time every time I go to a new restaurant or find a new stylist or dentist.”

“I like the fact that Yelp is honest, and most of the people are not fake users. They have profiles; you can tell if they
are giving their honest opinion of what the restaurant was like.”

“The reviews on Yelp are reliable, true and accurate most of the time. Usually I can catch which reviews are fake by
looking at the count. On the count it says how many friends and followers they have, and if they have usually less
than 10 … I do not even bother looking at their review because it is probably fake. They probably really hate the
company or the person that is running the company.”

2. Administrator of a nonprofit representing local independent businesses in Northern California
Yelp is the most important review site, and businesses ignore it at their peril. It will continue to expand, especially
because its mobile app is the most convenient way of finding a business through a smart device. Yelp has a bad
reputation among many businesses, especially restaurants, which believe that it uses the fear of bad reviews to extort
advertising dollars.
Growth
 “Yelp is going to keep growing. I know a lot of businesses don’t like it, but it is not going away. Businesses can’t just
ignore it.”
Mobile Platform
 “Yelp’s mobile site is great; I use it every day. It’s the easiest way to find a business on the Internet; it has the phone
number, the address, everything.”
Competition
 “Yelp is the most well-known review site around. In some ways it’s the only game in town. I look at reviews on some
other sites, like those at OpenTable. But OpenTable receives money from restaurants and is more open to conflicts
of interest. I know someone who wrote a very fair review of a certain restaurant for OpenTable, and it never even saw
the light of day. Yelp does seems to be on the side of the consumers.”
Yelp’s Review Filter
 “Our association represents independent businesses and artisans in our part of town, and we are sympathetic to
their point of view. Restaurants in particular tend to dislike Yelp. They and other small businesses feel like they’re
being strong-armed into advertising on Yelp. They feel that if you don’t advertise, the good reviews tend to get filtered
and the negative ones get more play. I think Yelp should get rid of its filter entirely and just post everything by date.
That way no one could accuse them of bias or extortion.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “Business owners may hate negative reviews, and it’s true that some are petty or unfair. But sometimes they are
telling hard truths that are just hard to hear. If you see the same complaints about a business year after year, for
example, you can be pretty sure that the business knows about the issue and is deciding to just not deal with it.”
 “I’ve written a lot of reviews for Yelp, and as a consumer I find Yelp really helpful.”
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3. Director of business development for a multinational electronics company based in San Francisco area
Yelp stands to gain international growth through its acquisition of Qype while continuing to battle Google for domestic
market share. Google’s review volume lags behind despite its acquisition of Zagat and Frommer’s. However, Google
promises to expand in this space via tighter integrations to Google+, Google Now and Google Wallet.
Growth
 “Yelp does appear to be making the right acquisitions in international markets in order to grow their brand. The
acquisition of their closest competitor in Europe, Qype, was a brilliant business move. My former colleagues at [a
communications and info tech corporation’s] division in Berlin were very bullish on Qype, and it was refreshing to see
that Yelp also saw them as primary means for customer acquisition in Europe.”
Mobile Platform
 “I am a frequent user of Yelp’s mobile app on my various devices. I feel they are an industry leader in utilizing
location-based discovery via GPS. Interestingly, I keep Yelp in a folder entitled ‘Travel’ with other apps like
OpenTable, Uber, [Cubic Corp.’s/CUB] NextBus and Google Maps. As a business traveler, I found myself using Yelp
most often in cities that I do not reside in or have less general knowledge about. Alternatively, in my ‘Social’ folder, I
keep apps like Foursquare, LinkedIn, Facebook, Instagram and Twitter.”
Competition
 “A recent newcomer to the scene was Foursquare, which focused more on the ‘gamification’ of location-based data
utilized by ‘checking in’ to an establishment. Over time Facebook and Yelp added these features, so Foursquare is at
a bit of a crossroads.”
 “Google has been, and still is, Yelp’s biggest threat in the marketplace.”
 “Yelp was also an acquisition target of Google’s before their IPO. Google built a tremendous amount of location data
with Google Maps and ended up building their own Yelp competitor with Google Places. Although their acquisition of
Zagat and Frommer’s did help prepopulate a lot of restaurant reviews into their Google Maps platform, their reviews
are often lagging behind the volume that Yelp carries.”
 “Facebook has also done a tremendous amount of scaling with their previously named Facebook Places.”
Yelp’s Review Filter
 N/A
Aspects That Yelp Needs to Improve
 N/A
Other
 “I use Yelp as more of a yardstick to measure the general consensus rather than my own network’s habits.”
 “I initially used reviews as a way to keep track of places I discovered to decide if I wanted to become a frequent
patron to an establishment. … My hope was that in the long run, places that ran great businesses deserved to grow
their clientele, perhaps then growing their business to a larger establishment that could handle the extra capacity.”
 “In general, Yelp’s reviews are honest and accurate although lately I find myself only looking at the 4-star reviews
versus the 1-star reviews. One major reason is because of all the negative press the company received for alleged
unsavory business practices. The other is that I find it is becoming more difficult for me to entrust the opinion of
people I do not know.”
 “I’ve also reviewed business on OpenTable after booking reservations there, Uber after using the mobile car service
app, and [Credible Inc.’s] Chefs Feed, a new restaurant review app.”
4. Lieutenant commander of the U.S. Navy, New York state
Yelp’s brand recognition, first-to-market standing, aggressive mobile accessibility, and advertising provide it with an
advantage over such competitors as Yahoo and its Alike Mobile. Yelp stands to gain additional share by improving its
integration with other web-based applications to enhance user experience, as well as to allow users to directly post
reviews from mobile devices. Questions surrounding the authenticity of reviews likely will not hurt Yelp’s market position
because, as this occasional reviewer notes, its current tie-in with Facebook Connect gives people the ability to rely on
friends for reviews.
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Growth
 N/A
Mobile Platform
 “Mobile advertising will help. … The best thing Yelp can do to improve their competitive position in the market is to
jointly integrate with other applications on the web to create a more robust experience and one that provides a onestop-shop for users.”
 “I use the mobile app much more frequently than the website. The one improvement I would make right away is to
allow reviews to be posted right from the app. As it stands now, I believe you have to go onto the website to post your
review.”
Competition
 “I haven’t heard of any up-and-coming sites that pose a real risk to Yelp.”
 “Yelp has the first-mover advantage, and has name and brand recognition that make it almost a household
terminology.”
 “If other sites integrate reservations, coupons, rewards and other social media, then Yelp would be disadvantaged in
its service offering.”
Yelp’s Review Filter
 N/A
Aspects That Yelp Needs to Improve
 N/A
Other
 “I usually read several reviews before I make a decision on the authenticity and reliability of the overall Yelp grade. ...
By ‘friending’ others I trust within Yelp, I can read what my friends think about certain establishments.”
5. 40-year-old teacher in Palm Springs, CA
Yelp is very popular and should grow throughout the rest of this year. The source does not like how reviews are filtered,
but said most reviews are accurate and reliable. Yelp has no real competitors, and its strength lies in the number of
reviewers. She does not use Yelp’s mobile app.
Growth
 “Yelp will continue to grow this year. It is already pretty popular.”
Mobile Platform
I do not think there is a threat
 “No, I do not use Yelp’s mobile app, but that is just me because I do not like
to Yelp, actually. I think Yelp is
to download apps on my phone.”
the main go-to site.
Competition
 “Yelp is better than its competitors because of the number of posters. If you
Yelp Reviewer
Palm Springs, CA
are looking for a restaurant out of town and 500 people gave them 5 stars,
you will be more likely to go there.”
 “I do not think there is a threat to Yelp, actually. I think Yelp is the main go-to site.”
Yelp’s Review Filter
 “I like almost everything about Yelp’s website. But the one thing I do not like is how they filter their reviews. I have
seen a lot of reviews filtered after the fact. You have to click on a link and put in a code. While some of them should
be filtered, it seems like Yelp is not really careful.”
 “I do not like the way Yelp filters their reviews. They are selectively choosing which ones to filter and, to me, are
making mistakes; they are filtering ones that should not be filtered.”
 “Most reviews on Yelp are accurate, reliable and true.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “I like how Yelp links you to your friends on Facebook. If I have friends on Facebook, it shows you all of their reviews.”
 “I do look at Yelp a lot.”
 “I am not a huge poster. Sometimes I will post a lot if I am out of town. I tend to post more when I am upset.”
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6. Retired programmer analyst in Seattle
This source does not post reviews very often on any site, but she does enjoy reading reviews from people who give
honest, fair opinions. She does not use Yelp’s mobile app, but will check the website from her mobile phone when
traveling. She was unaware of any Yelp competitors except for TripAdvisor, which she uses regularly.
Growth
 N/A
Mobile Platform
 “I do not use Yelp’s mobile app. I do most of my review checking at home unless traveling. Then I may check on my
phone.”
Competition
 “I am only really aware of Yelp and TripAdvisor. I use both to check things. I think Google has something and there
are other smaller ones, but I mostly use these two.”
Yelp’s Review Filter
 “I seldom take the time to post reviews unless I really love or hate something or see that someplace I regularly use is
asking for reviews. The problem is that it makes me look suspicious, so my reviews can get filtered to never-never
land. Having this happen a couple of times makes me unlikely to post any reviews. And I suspect I am not alone, so I
figure opinions are only or mostly from people with lots of time to post reviews.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “A review on Yelp reflects one person’s experience or interpretation of events. If I read a dozen reviews and they are
all similar, I go with that. If one review hits a real concern of mine, that can be enough.”
 “Sometimes with Yelp I feel like I’m only getting the fanatical view—people who threaten to ‘Yelp’ businesses. I like
less drama with opinions.”
7. Freelance journalist in San Francisco
This reviewer believes Yelp will continue to grow as it is the most powerful review site online. Other review sites, like CBS
Corp.’s (CBS) Chowhound and TripAdvisor, are mostly focused on niches such as travel or food. Yelp reviews seem about
80% accurate and honest, and can be useful if approached with the proper skepticism.
Growth
 “Yelp will continue to expand this year and probably beyond. It’s like the
cornucopia of reviewing; it covers every form of consumption. It’s the largest
It’s like the cornucopia of
review site. Yelp is to reviews what Google is to search engines.”
reviewing. … Yelp is to reviews
Mobile Platform
what Google is to search
 “I don’t really use the mobile app because I don’t want it to take up space
engines.
on my smartphone. I don’t want to crowd it up with all these little apps.”
Competition
Yelp Reviewer
 “No direct competitors to Yelp come to mind. I think Google is giving Yelp
San Francisco, CA
some competition because it carries Zagat, but that’s sort of a niche travel
market. … Also there are good niche food sites, like Chowhound, which was
started by some really serious foodies. I also use TripAdvisor although some of their reviews sound a bit fake.”
Yelp’s Review Filter
 “Yelp reviews are by and large accurate, at least 80% of them. I get that impression by reading the reviews of places
that I’ve actually been to. I got a recommendation for a place to get a great bikini wax, for example, and the place
was just as nice and professional as the review said on Yelp.”
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“I do use Yelp reviews, but I take them with a grain of salt. I think the reviews can be abused. Competitors can write
critical reviews, and you have some malcontents who just want to vent.”
 “The second review I wrote was for a restaurant owner who serves North African food and is a friend of mine. The
menu is so inviting and delicious, with such a mélange of cuisines. … Let’s see, he has a 4-star rating. Only 4 stars?”
[The source tries to look up her own review] “Hey, it’s not here! I wonder what happened?”
 “I’ve just written one or two Yelp reviews. In one, I wrote about a pie place that was just incredible. … I gave him a 5star review.” [She looks it up online] “Yes, there it is. I see he has 29 reviews and a 5-star rating. Well, he definitely
deserves it.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “I am very curious to see the cross-cultural manifestations as Yelp expands overseas. In Asian cultures, for example,
you have honor and shame. I don’t know how the kind of Yelp reviews here would play out there.”

8. Social business strategist for a social media solutions company based in Texas
This occasional reviewer and frequent Yelp user said the market lacks a clear-cut winner that is effectively targeting all
audiences and categories, which is why he uses Yelp, Google and FourSquare (and occasionally Foodspotting) when
searching for restaurants. Yelp’s expansion efforts likely will prove fruitful, but it is not built into any daily routine outside
of the restaurant market. Foursquare and Google cover more search topics.
Growth
 “If Yelp is successful in those areas [mobile advertising, international, etc.],
of course it will help. I think Yelp currently has a very narrow use case: The
Foursquare
is
gaining
user is hungry, wants to know where to go to eat close by. Outside of that
momentum.
Watch
out
for
use case, Yelp isn’t built into any other daily routine. That’s where
them. … Foursquare is better
Foursquare and Google have the leg-up.”
Mobile Platform
because it’s in my routine. I
 “I definitely use the mobile app. I like the tablet app much better than the
check in just about wherever I
phone, which is not to say the phone app is bad. I love the layout the
go, so I’m already in the app
tablet’s larger screen provides.”
which makes it much easier to
Competition
 “I’m not using fewer services right now; instead, my pie is getting bigger.
add a tip, read a review or like
When I look for a restaurant I’m using Foursquare, Google, Yelp and
a tip.
Foodspotting. Eventually, I’d like to use just one. But there’s no clear cut
Social Business Strategist
winner now, so I triangulate my choice between multiple services.”
Social Media Solutions Company
 “Foursquare is gaining momentum. Watch out for them.”
Texas
 “Foursquare is better because it’s in my routine. I check in just about
wherever I go, so I’m already in the app which makes it much easier to add
a tip, read a review or like a tip.”
 “Google is also in the workflow when I’m doing a search from either Google.com or Google Maps.”
 “TripAdvisor is better [than Yelp] because I associate it with more than just restaurants. I know Yelp does more than
just restaurants too, but I only use them for that category.”
Yelp’s Review Filter
 “Most reviews are reliable, true. You always have to watch out for those getting paid to write reviews, the business
owner’s biased cousin or the one in a million rant.”
 “The big advantage I see to Yelp is the number of people using the service. I’ll often choose to visit a restaurant if
there are enough positive reviews. It’s always a good sign when a place has hundreds of ratings and reviews.”
 “It’s also nice to know that your review will be seen by a large number of people, and hopefully have an impact.”
 “You have to make adjustments for Yelp reviews or reviewers being younger. I generally remove one dollar sign from
the pricing and don’t pay much attention to any one review.”
Aspects That Yelp Needs to Improve
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
N/A
9. 51-year-old self-employed computer service and repair technician near Los Angeles
This source regularly visits Yelp and posts reviews about once a month. He finds the site easy to navigate, and believes
Yelp has an advantage since its searches show up on Google’s first page. He said Yelp’s mobile app is not as easy to use
as the site. Yelp tried to entice him to advertise his own business, but he opted not to since he does not like its filter
system. He gauges a reviewer’s reliability by seeing how many posts the person has written and if the person has posted
personal details and a photo.
Growth
 N/A
Mobile Platform
 “I have tried Yelp’s mobile app, and I do not like it. The desktop website is just easier to use.”
Competition
 “I am not aware of any competitors to Yelp. Their main competitive advantage is when doing Google searches, Yelp
reviews always seem to show up on the first page.”
Yelp’s Review Filter
 “Yelp tried to get me to advertise my business, but I am very dissatisfied with their filter system. I have lots of
legitimate reviews from clients that fall into their filtered section instead of my main Yelp page. That is not
acceptable, and I will not advertise with them because of that.”
Aspects That Yelp Needs to Improve
 N/A
Other
 “On average, I post Yelp reviews once a month. The site is easy to navigate, and it seems to be a true ‘user’ review
site.”
 “The easiest way to gauge reliability is to see if people are also reviewing other things. If a company has a bunch of
reviews from people who only review them, have no personal details/photo on their Yelp profile, it can appear to be a
shill review.”
4) INDUSTRY SPECIALISTS
Yelp’s future is mixed among these three sources: One believe Yelp will continue to grow, one said it will grow during the next
six months before feeling the pressure from competition, and the third believes Yelp’s growth will be stymied by Facebook.
Although two sources rated Yelp’s mobile app as good, one of the two again believes Facebook’s Graph Search is a threat.
Two sources also believe Facebook and Google are close on Yelp’s heels, and two said accuracy issues in Yelp’s filter system
remain. Yelp needs to resolve the issue of reviewers posting negative opinions in hopes of receiving free services, and it
needs to focus more on the reviewer than the review. The third sees needed improvements in Yelp’s leadership.
KEY SILO FINDINGS
Growth
- 1 source expects continued growth for Yelp, and 1 projects growth over the next six months. 1 source expects
Facebook’s Graph Search to pose formidable competition.
Mobile Platform
- 2 sources agree Yelp’s app is good, but 1 of the 2 views Facebook’s Graph Search as a threat.
- Facebook’s Graph Search is better than Yelp because people prefer their friends’ opinions.
Competition
- 1 source sees no real threat to Yelp. 2 sources said Yelp has formidable competition.
- Competitors include Google, Facebook, eBay Inc.’s (EBAY) Epinions, Chowhound and OpenTable.
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Yelp’s Review Filter
- Yelp has corrected its filtering accuracy issues, according to 1 source. 2 others said the filter is inaccurate and
unreliable.
Aspects That Yelp Needs to Improve
- 1 said Yelp needs to be wary of reviewers trying to gain free services through poor reviews.
- 1 source said Yelp needs to focus less on the review and more on the reviewers.
- 1 source believes Yelp needs new leadership and an improved filter system.
1. Lorrie Thomas Ross, CEO of Web Marketing Therapy
An undisputed market leader in peer-to-peer marketing, Yelp will continue to expand in 2013. Its competitors are mostly
niche sites like OpenTable and Chowhound. Yelp should use culturally sensitive marketing in its international expansion
and correct any domestic abuses of its brand, such as “weblebrity” reviewers demanding free food or other favors from
small businesses. Thanks to consumer pressure, the corporation corrected its PR problem related to high-pressure sales.
Businesses should manage, rather than fear, Yelp.
Growth
 “Absolutely, Yelp will continue to expand this year. It has grown in stickiness and search engine ranking, and it has
the trust of the general public. Yelp is definitely a leader: It’s recognized, it’s easy to spell, it has a nice layout, and it
doesn’t seem to use a heavy hand. I’d say at least 80% of the reviews are accurate and reliable. It’s peer-to-peer
marketing, which is a huge trend.”
 “As far as international expansion goes, Yelp should approach that very carefully and get country-specific advisors
who understand marketing in those particular cultures. American marketing tends to be a bit bombastic. In other
cultures, that may not be the natural style.”
Mobile Platform
 “It’s a good app. ... I go to Google first, and Yelp usually comes up anyway.”
Competition
 “The would-be competitors are mostly niche sites, like Chowhound and Open Table. Google+ has some reviews.
There’s the Better Business Bureau, but its site is a bit sterile. Epinions has been around forever. But no one has
emerged as a serious competitor to Yelp.”
Yelp’s Review Filter
 “There was some bad PR a little while ago about reviews disappearing and pressure to advertise. But thanks to the
power of the people, Yelp quickly corrected that.”
Aspects That Yelp Needs to Improve
 “Some reviewers are taking advantage of Yelp to get free food. They consider themselves ‘weblebrities.’ It’s
something to pay attention to.”
Other
 “Businesses shouldn’t fear Yelp. Some … think Yelp is the worst thing ever; for others, it’s the biggest traffic driver.”
2. Social media instructor and VP of marketing technology for a private company
Yelp is facing potentially disruptive competition from Facebook, Google and Yahoo as they invest more in reviews, mobile
sharing tools and integration. Yelp is in particular danger of losing significant share once Facebook rolls out its Graph
Search mobile app. Google also could be a major threat as its Google Local integration advances. International expansion
offers the biggest opportunity for growth, but Facebook is already present and thriving overseas. In addition, Yelp’s
unpopularity among businesses may catch up to it.
Growth
 “Yelp is facing a formidable threat in Facebook ‘s Graph Search, but it’s too early to tell what effect that will have this
year. As soon as Facebook gets Graph Search on its mobile app, Yelp is in trouble. International expansion is its
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growth opportunity, but … Facebook is already there and seeing double-digit growth in those areas. Facebook may
not be ready with its mobile [Graph Search] app this year, but the day they roll it out Yelp will be in a lot of trouble.”
Mobile Platform
 “It’s good, but it lacks the built-in social infrastructure of Facebook. I can go to Yelp right now and get a good
roundup of restaurants in the neighborhood. But if I can use Facebook Graph Search, that’s even better. I don’t care
what an anonymous reviewer says.”
Competition
 “[Yelp] has an active community, but it is in danger from Google, Yahoo and Facebook. Facebook’s Graph Search is
incredibly powerful. Its reviews are unquestionably better than Yelp, because they’re from your friends. … Also,
Google Local integration poses a huge potential threat to Yelp. It’s tuning its algorithms very, very carefully to reduce
spam. And in terms of search rankings, Google can play hardball with Yelp.”
Yelp’s Review Filter
 “I don’t personally see Yelp reviews as reliable and accurate.”
Aspects That Yelp Needs to Improve
 “Yelp is integrated with Apple Maps and shows up on Google Maps, but as they bring them into the network, that
advantage will be nullified. … Also, the trend is for social networks to be about the person instead of the object. And
with fears of extortion, Yelp doesn’t have the audience on its side.”
Other
 “A lot of companies have built-in, contained review sites. Take Airbnb. These places won’t show up on Yelp because
they’re not official businesses. But they’re the consumer economy that is side-stepping the business [economy].”
3. Adryenn Ashley, marketing author, pundit and mentor to small businesses, entrepreneurs and CEOs
Ashley is an anti-Yelp crusader who has advised thousands of distraught small business owners on how to repair
reputations damaged by the review site. Business owners call her at least once a week or contact her through her antiYelp site. Yelp needs revenue from businesses, but its leadership reportedly has made clear it does not care about them.
Yelp has a very narrow window in which to turn things around before it will be overtaken by competitors such as Google.
Growth
 “It’s safe to say Yelp will continue to grow for the next six months. Yelp is very clever and it has so much potential,
but it needs a regime change. I’m not sure it will ever be profitable.”
Mobile Platform
 “The filtered reviews don’t show up on the mobile platform, which is a big problem for businesses whose good
reviews are filtered.”
Competition
 “Google is working on some things that will definitely give Yelp a hit. Google doesn’t have the trust issues that Yelp
does. There are some places that Google is looking to acquire that would be a huge threat to Yelp; even its mobile
app won’t be able to sustain it.”
 “Yelp is snarky and negative. … Google is building a better mousetrap.”
 “I don’t think Facebook’s Graph Search is going to take over, but a new Facebook app [for reviews] could be very
attractive.”
 “Flyplist and Latch.com are some competitors to watch. Flyplist is a community of friends that can share
recommendations on Facebook. Latch.com is for home services only; it only lists the crème de la crème, so it’s a
positive kind of site. You have to be really great to get in.”
Yelp’s Review Filter
 “I remember when Yelp brought up the idea of filtering reviews, and it was just planning to delete them at the time.
In a public forum, with about 100 people there, I said Yelp should display the filtered reviews. And soon afterward,
about a week later, it did make that decision; the filtered reviews began showing up. And I have to say that the
review filter worked perfectly in the beginning. I must have checked 1,000 reviews, and the filter did exactly what it
said it did. Every filtered review I saw looked suspicious. The ‘secret algorithm’ was working perfectly. But about two
ago the filter broke.”
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“After the filter broke, we started getting an escalation of complaints about Yelp. People would say that if they said
no to advertising, a majority of good reviews would end up in the filter. Now, I’m sure that no one inside Yelp was
manipulating the reviews. I have sources inside Yelp. I think it’s a rule engine. I told Yelp this is what I’m hearing, and
whatever you changed, something broke the filter. Business owners are complaining, and you should fix it. But
apparently nothing has changed.”
Aspects That Yelp Needs to Improve
 “Yelp needs new blood, new leadership. It has a pretty narrow window of opportunity to fix things before it gets
overtaken by the competition.”
 “Yelp needs to fix its filter. They backed out of a deal with Google, I think, because they couldn’t handle the due
diligence, the looking over of its black-box algorithm. They backed out of the code review.”
 “Yelp is using third-party immunity to protect itself from lawsuits. But writing its own reviews and filtering reviews in a
way that changes the automatic ratings are not third-party. Also, it’s protected speech if you’re a U.S. citizen. What is
going to happen when they go to another country?”
Other
 “It’s Yelp’s talk boards, where people go and talk for two to three hours, that push it up in the search engine
rankings. It’s non–revenue generating, but it gives Yelp its clout. It’s the talk of the town.”
 “In 2008 I was a very active member of Yelp. … I’m now active again as a reviewer on Yelp, but I went on to found
YelpSucks.com.”
 “Business people constantly call me in tears about their Yelp ratings. … They say, ‘I’m being tortured; my reputation
is ruined.’ They feel they’ve been victimized; they feel powerless and helpless and that nobody cares.”

Secondary Sources
The following three secondary sources discussed Yelp’s new Nearby tab, its potential mobile traffic from Apple’s updated map
app, and its willingness to be acquired.

June 12 Make Use Of article
Yelp launched a new Nearby tab (for iOS users only) “to include recommendations from past check-ins, reviews and Yelp
friends.” The Android version will be released soon.
 “Yelp has updated its Nearby feature to include recommendations based on your past check-ins, reviews, and
your Yelp friends. It even takes such things as time of day and weather into account, trying to come up with the
most suitable best places in your immediate surroundings.”
 “Aside from the new Nearby tab, Yelp’s Events page has also been redesigned, with popular events now also
showing on the new Nearby tab, making it easier to find nearby events for entertainment as well as places to eat
when browsing your neighborhood.”
 “Yelp says that this is only the beginning for the Nearby tab and user-based recommendations. New features will
be added in the following months, based on user feedback to each addition. The new recommendation feature
is only available for iOS users to start with, but Yelp promises that it’s coming for Android ‘soon.’”

June 5 Barron’s Tech Trader Daily post
Yelp is expected gain mobile traffic from Apple’s update to its map app.
 “Shares of online recommendations purveyor Yelp are up 98 cents, or 3.6%, at $28.44, following a note from
Wedge Partners’ Brian Blair, who writes that the company could benefit from Apple’s refresh of its own maps
application, which he expects will be discussed during next Monday’s keynote presentation at Apple’s Worldwide
Developer Conference in San Francisco.”
 “It’s been one year since Apple announced integration of Yelp’s local listings data and reviews into its iOS
operating system for the iPhone, iPad, and iPod Touch, notes Blair, and ‘Yelp’s stock is up roughly 75% since
that period, driven by growth in the mobile side, which has been lead (in our opinion) by iOS integration.’”
 “Blair notes that ‘36% of ad impressions were shown on mobile in Q1 (vs. 25% in Q4:12). This is much higher
than our expectation of 27% and reflects the company’s increased leveraging of both the mobile Yelp app, as
well as Yelp on the mobile browser, each of which supports ads.’”
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



“‘Even with Yelp’s solid growth in mobile, however, we believe that the issues surrounding Apple Maps have
somewhat crimped Yelp’s usage by iOS users who initially had problems with Apple Maps, largely with its
‘accuracy’ [...] We expect to see numerous changes and feature updates announced for Apple Maps that
significantly improve the user experience and ultimately increase adoption of the platform by existing iOS
users.’”
“‘We believe this will be a positive for Yelp’s mobile metrics, particularly for CYQ4 and provide a stock catalyst,
as we believe a better Apple Maps experience will increase Yelp usage by existing iOS users, many of whom
continue to use alternative mapping platforms since last September.’”
“‘Fixes could include public transit directions, improved accuracy of labels and positions, improved directions,
better context to local searches, and an announcement of human analysis,’ writes Blair, as he thinks Apple
needs to add something akin to Google’s roving fleet of cars that create Street View to improve accuracy.”
June 1 Yahoo! News article
Yelp is facing direct competition from Facebook’s Graph Search and Google+ Local, but it believes that it would be a
great partner or acquisition to either company.
 “Consumer review aggregator Yelp Inc. … is open to partnering with the social networking website’s latest
offering, Yelp’s Chief Financial Officer Rob Krolik told Reuters.”
 “Facebook, in January, unveiled its graph search feature, available in a beta version, letting users trawl their
network of friends to find everything from restaurants to movie recommendations, bringing it into direct
competition with Yelp.”
 “‘We are actually happy to partner with Facebook (for graph search) if that’s something that they’re interested
in,’ Krolik said.”
 “Yelp’s mobile app makes it easier for people to discover local businesses. It combines Yelp’s reviews and other
relevant information with knowledge of the consumer’s location. It also allows consumers to ‘check-in’ at local
businesses.”
 “Google Inc, through its Google Plus Local product, also recommends businesses to its users based on circles,
past reviews, location and allows them to publish reviews and photos of favorite places.”
 “‘It’s not directly a revenue generator, but in theory it would increase the value of advertising on Yelp, just
because you’re getting it out to more people.’”
 “The success of graph search, which will rely heavily on local information, depends on Facebook launching a
mobile app. In addition, graph search lacks the depth of review content offered by Yelp.”
 “If Yelp were to partner with Facebook for graph search, the consumer review aggregator would be in a better
position to compete with Google, Jefferies analyst Brian Fitzgerald told Reuters.”
 “Yelp already has a tie-up with Facebook Connect, which allows users to login with their Facebook credentials
without having to create separate accounts for different websites. A Yelp user can see if a Facebook friend has
reviewed a business.”
Additional research by Cheryl Meyer, Marissa Yaremich and Diana Hembree
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