Just as we get news of some consolidation in the local content market in the UK, some news of expansion, too: Qype, the Yelp of Europe (and Yelp’s closest competitor in the region), today announced that the number of places reviewed on its site has reached 860,000, with the number of monthly unique visitors now at 25 million. It claims that this makes it the biggest reviews site in the region, about five times bigger than its closest competitor, the U.S.-based Yelp.
And while companies like Groupon are trying to move beyond the daily deal to become the platform for local commerce, Qype is doubling-down on the concept, expanding its own deals offerings with a free service to attract more local businesses to the concept.
→ Read More
In its first ever earnings report as a publicly-traded company, Yelp said it earned $27.4 million in revenue, up 66 percent from the $16.5 million it made in the same time a year ago.
However, the company more than tripled its net losses, mostly on rising costs associated with supporting a larger sales staff. It lost $9.8 million, up from the $2.7 million it lost in the same time a year earlier. That loss of 31 cents per share was about double what analysts had estimated. Analysts had predicted a loss of 15 cents per share, according to a Bloomberg survey.
Looking at the sheet, Yelp’s loss expanded mostly on sales, marketing and administrative costs. Sales and marketing costs rose to $18.8 million, up from $11.3 million the year before. On the earnings call, the company said much of this headcount growth came from international expansion, which it has yet to fully monetize. In the first quarter, Yelp launched in 11 new markets, eight of which were international. → Read More
Finding a good restaurant – even in a city you’ve never been to – has never been easier. Thanks to Yelp, Urbanspoon and its various brethren, a good place to eat is generally just a few clicks away. What if you want to find a restaurant with a very specific atmosphere, though? Say you’re in the mood for a pizza at a relaxed place where the noise level is just right for a good conversation? Chances are, Yelp won’t be much help there, but the newly redesigned Hoppit is putting these kind of searches at the core of its service. The New York-based startup describes itself as the “world’s first ambience search engine for restaurants and bars.” → Read More
Remember Highlight? That app that everyone thought was hot stuff back at SXSW? I used it for a few days and then deleted it, discovering quite quickly that the app, despite some utility, was an absolute battery hog. But what Highlight did was prove that, given the proper scenario, check-in works and is important. What frustrates me most, however, is that we keep doing it wrong.
Take this new app, Chkin.at, for example. It allows you to check-in at various websites and to become King of a certain page, thereby giving you certain conjugal rights with the ladies of your Kingdom (not really). Rather than dismiss it outright – it kind of works, but it spurred this little rant – I’ll note that it, like so many other apps, suffers from that fatal flaw: the check-in.
→ Read More
At TechCrunch Disrupt NYC last year, Gauri Manglik, Mike Lewis, and Orion Burt launched SpotOn, a recommendation engine in app, which served its users suggested local businesses based on their friends’ activity on Foursquare, Facebook, and more. The co-founders quickly found, however, that its customers were using the app more as a social networking tool than for its recommendations. So, based on user feedback, the team changed directions and built a new app, today called Fondu.
Fast-forward to the present, and Fondu has officially launched a redesign that, among its new features, shows that the app is getting serious about friend-powered restaurant search and discovery. → Read More
With Yelp stock beginning its second day of trading tomorrow morning, I wondered what a Yelp review of Yelp stock might it look like. → Read More
For Yelp, this has been a very good day. The restaurant review site was received exceptionally well by Wall Street during its first day as a publicly traded company, closing at a price of $24.58 per share, up a full 63 percent from its $15 IPO price. → Read More
Wow. Reviews site Yelp just saw a huge pop in early trading of its stock on the New York Stock Exchange this morning. Yelp opened at $22 per share, after pricing at $15 last night. Shares, which are listed under the symbol ‘YELP’, are trading up 60 percent from last night’s pricing, putting Yelp’s valuation at over $1.3 billion. UPDATE: Yelp’s stock closed at $24.52, up over 60 percent from the initial pricing.
Yelp offered 7.15 million shares, aiming to raise about $107.25 million. As heard yesterday, the deal is said to be heavily over subscribed. Yelp’s total revenues in 2011 were $83.2 million, up 74.6 percent from $47.7 million in 2010 (and 25.8 million in 2009), but net losses were up to $16.9 million in 2011 — a 74.2 percent increase from a net loss of $9.5 million in 2010. (Adjusted EBITDA losses were $1.1 million). → Read More
Tomorrow morning comes the moment Yelp CEO Jeremy Stoppelman’s been waiting for seven years. According to the NYT, Yelp will drop on the NYSE under the YELP ticker tomorrow morning.
Yelp will be offering 7.15 million shares at $15 dollars a share, wanting to raise about $107.25 million in its IPO. The deal is said to be heavily over subscribed, and I’ve heard that some Yelpers were disappointed by the low price — despite the fact that the company is still not profitable, despite trading at a valuation of more than ten times its earnings. → Read More
Yelp built its ad business by attracting users that know what they want, just not who to buy it from — exactly when ads are most effective. That’s why I find today’s VentureBeat piece by Rocky Agrawal titled “Yelp advertising is a rip-off for small advertisers” to be ridiculous. His sources say Yelp charges a $600 CPM, or 1,000-times the standard online CPM rate.
Yes, these ads are expensive, especially for low-end restaurants. But for lawyers, dentists, jewelers and mechanics with a high lifetime average revenue per customer, turning someone searching for their services on Yelp into a loyal customer is no rip-off, it can drive huge ROI. → Read More
I’ve heard like a billion people complain about this recently so here goes: When you’re starving you don’t want to read through thousands of Yelp reviews on your phone or download a random PDF from a terrible restaurant website that’s so slow-loading it’s indecipherable. You just want to know where a restaurant is, what it has to eat, and whether or not it’s open.
‘Menu and Hours’, a Kickstarter project, is an app designed just to give you just the menu, hours, contact info and location of local eateries — the antidote to unnavigable mobile restaurant sites and TMI foodie services like Urbanspoon. Brilliant, right?
→ Read More
Local recommendation site Yelp has finally filed an S-1 to IPO, wanting to raise $100 million.
The site generated $58.4 million revenue in the first nine months of 2011, 80% growth over the same period in 2010. They operated at a net loss however, of $7.6 million.
→ Read More
Yelp and Groupon are both being sued by a company called Mobile Commerce Framework, an obscure patent troll that earlier filed a similar patent infringement suit against Foursquare.
On April 6, 2010, Mobile Commerce Framework (MCF) was issued US Patent No. 7,693,752 by the USPTO, for reasons unknown to mankind. In summary, this patent describes:
(After the jump) → Read More
Last year, several lawsuits emerged that accused Yelp of extorting businesses to advertise in exchange for positive reviews. Yelp has just announced that a judge granted Yelp’s request to dismiss these suits.
For background, the lawsuits claimed that after declining a request to purchase advertising on Yelp, a number of positive reviews from businesses’ listings on the reviews site mysteriously disappeared, downgrading the company’s rating on the site. → Read More
This afternoon the Senate Judiciary Committee held a series of hearings investigating whether Google may be violating Antitrust law. During the first panel of the day, Google Chairman (and former longtime CEO) Eric Schmidt took the hot seat to answer questions focusing largely on the fairness of Google search results, and whether they unfairly favor Google products (you can find our full post on that hearing right here).
During the second hearing, which just ended, a handful of Google critics and competitors made their cases as to how Google has been anticompetitive. One of these critics was Yelp CEO Jeremy Stoppelman, who released a statement last night (embedded below) outlining why he believes Google has abused its market dominance in search. And he provided additional details about Yelp’s relationship with Google during a series of questions from the participating Senators. → Read More
Chris Dixon begins this episode of Founder Stories with DoubleClick and FindTheBest Co-founder Kevin O’Conner by telling O’Connor that “DoubleClick is probably the closest thing New York has to a PayPal.” Meaning the two companies share an aptitude for hiring employees that go on to start innovative businesses. Just as Paypal spawned Yelp, YouTube, and LinkedIn, DoubleClick spawned dozens of startups in New York City like Right Media.
With this in mind, Dixon asks O’Connor if he intentionally created an environment that encouraged innovation while at DoubleClick, before going on to ask O’Connor what he considers to be the defining characteristics of successful entrepreneurs. → Read More
“I have a competition in me. I want no one else to succeed.”
I’m reminded of Daniel Plainview’s admission in There Will Be Blood when thinking about Google.
While the company is still largely beloved by the public, sentiment seems to have turned against them amongst their peers, and even amongst many of the startups around Silicon Valley. While these tensions have been building for months — and even years, in some cases — we’re seeing this on display more clearly than ever now thanks to the patent issue(s). → Read More
When it comes to local commerce, the ultimate prize everyone is going after right now is how to close the redemption loop. The redemption loop starts when a consumer sees an ad or an offer for a local merchant, and is completed when the consumer makes a purchase and that purchase can be tracked back to the offer. If you know who is actually redeeming offers and how much they are spending, you can be much smarter about tweaking and targeting those offers.
Groupon, LivingSocial, and other daily deal sites have created enormous value by pushing the redemption loop the furthest. When someone buys a daily deal, for instance, that translates into cash for the merchant. But for the vast majority of their deals Groupon and LivingSocial do not track whether or not they are ever redeemed, much less the amount each consumer actually spends at the store or restaurant once they show up.
In order to complete the circle and track offers all the way through redemptions, it is necessary to either tap into the payment system or create an alternative way to track redemptions. Different companies are tackling this problem in different ways, but they almost all rely on a shift from emailed coupons to offers delivered through mobile apps. → Read More
If you talk to Yelp CEO Jeremy Stoppelman, he always likes to point out how many reviews there are on Yelp. It’s a point of pride and competitive differentiation. Even Google Places, which borrows liberally from Yelp reviews, seems to think so.
Today, Yelp crossed 20 million reviews, up from 10 million in March, 2010 (and 17 million last April). The reviews bring in the visitors, and visitor growth tracks pretty closely with the growth in reviews. Yelp hit 53 million visitors in June, according to its own stats. → Read More
Foursquare this morning announced distribution partnerships with daily deal providers LivingSocial, Gilt City, zozi, BuyWithMe and AT&T. Missing from the list are Groupon, Yelp and Google Offers.
With these deals, Foursquare is attempting to solve two problems: liquidity in deals and its own lack of a revenue model. → Read More
San Francisco, CA
