Yelp is an online review and social networking site founded in 2004 by Russel Simmons and Jeremy Stoppelman.
Yelp aggregates user reviews of local businesses and lists businesses not rated highly by its users.
Yelp is a consumer review website. It aggregates consumer reviews for restaurants, retailers, nightclubs, entertainment, hospitals, services providers, and more.
Yelp is a social network site and business review site for local businesses and consumers. It filters out fake reviews and removes reviews that violate its terms of service.
Yelp is an American publicly traded company that operates a social networking and review website, www.yelp.com. It accepts user-submitted reviews from real people and places them on its website.
Yelp serves as a business directory and aggregates reviews of local businesses submitted by users.
Users write reviews for companies and products they want to recommend. Businesses can post reviews on their websites or special pages on Yelp.com.
Yelp uses a scale of five stars. Each rating reflects whether a reviewer is positive or negative. Users can rate businesses based on their ratings.
Yelp had 244 million reviews and 5,8 million businesses on its website as of December 31, 2021. Yelp is available in over 35 countries in all languages.
Google and Yahoo offered to acquire Yelp before the company filed for an IPO in 2011 for $500 million and 1 billion, respectively. Both Yelp and Yahoo offered rejection, and in 2011!
Google and Yahoo offered to acquire Yelp for $500 million and $1 billion, respectively. Yelp turned down both offers because it did not want to become part of either company.
Yelp turned both offers down because it was uncomfortable with giving control to either of the tech giants. Yelp went public in 2012 with more than $900 million in value.
Yelp Inc., whose stock was valued at over $900 million on July 11, 2018, had a market capitalization of $1.974 billion.
In 2020, the Yelp website received 43 million unique visitors and generated $849 million in revenue. Yelp employs over 3,000 people and posts more than 206.5 million reviews on its business listings pages.
Most review platforms face major problems with their credibility. Businesses have suffered tremendous losses and reputational damage due to the negative reviews they received from competitors or other people who tried to harm them.
Yelp uses automated systems and human reviewers to sort out false reviews. It rejects reviewers who violate its policies. The Yelp service blocks users who violate its policies for a limited time.
Yelp placed over 100 warnings on the pages of businesses that tried to exploit the health crisis and removed almost 4,500 reviews that were not true.
Yelp is more proactive than its competitors in managing risks. Yelp’s focus on being hands-on with its customers and robust features distinguish it from its competitors and alternatives.
Yelp has a good reputation in its marketplace, but it is often challenging for established companies and independent review sites.
Yelp is experiencing stiff competition from its biggest competitors and provides insight into the user-generated review and business directory industry.
Top Yelp Competitors & Alternatives
Yelp’s Top Competitors and Alternatives are Foursquare, Bing, Zagat, TripAdvisor, Rent.com, MerchantCircle, GrubHub, UrbanSpoon, Angie’s List, HomeAdvisor, Groupon, OpenTable, LikeWhere, MatchCraft, Healthgrades, ReachLocal, EatEasy, and Talabat.
Let’s learn about Yelp’s top competitors in detail:
Foursquare is a local search and discovery service that helps people find interesting places based on things they have already experienced.
Foursquare is probably the website most closely resembles Yelp, but some key differences exist.
Foursquare does not allow people to leave reviews of businesses but allows users to post short tips about what other people have said about a place. Sometimes those tips include a link to more information about the place.
Users rate businesses by answering questions about the business and the times they visit or leaving tips.
Foursquare can recommend businesses based on how others have recommended them and your time of day.
Bing is the second most popular search engine after Google and is responsible for 36,96% of the US market.
Bing allows searchers to find what they are looking for using different search parameters such as text, videos, images, and maps. Bing generated $7,74 billion in revenue from search ads for the fiscal year 2020.
Yelp’s largest competitor, Bing, was founded in Redmond, Washington, in 2009. The market value of Bing exceeds that of Yelp by about 6.7 billion dollars.
Yelp is a key partner of Bing and the main source of reliable customer reviews for its local search engines.
Bing and Yelp have been its key partners for years, providing them valuable consumer feedback on local products and services.
Yelp and Bing had a great relationship in the beginning, but the relationship has soured over the years as Microsoft attempts to increase Bing’s capabilities.
Bing will stop accepting Yelp reviews on its sites in February 2021 and instead will accept reviews from Facebook. This move will reduce Yelp’s market share and make it less competitive than Bing.
Bing is a Microsoft subsidiary that has the resources to compete with Yelp. Yelp is now competing with Microsoft Bing without the partnership.
Google has control over 92% of the search engine market. It provides consumers with more than 3 billion searches per day. Google Search performs more than 3.5 billion searches per day.
Google’s Search service is the site’s most profitable and popular part. It provides users with search results that are relevant to their search terms.
In 2020, Google Search generated 71% of all Google advertising revenues and 57% of all Alphabet’s revenues.
Google’s search engine is the most lucrative industry and the most popular website in the world. Alphabet generated $72 billion in revenues for Google Search in 2020. That is more than seventy percent of Google’s ad revenues.
Google has been working closely with Yelp since 2004. The company is very popular on Google due to Yelp’s high Google ranking. Yelp and Google terminated their local search collaboration.
Google took the lead over Yelp in local listings. It shows the most relevant listings. The business page on Google collects reviews and photos from visitors.
Google ranked higher than Yelp in the results for all types of businesses. Google offers business listings with reviews and additional business information, such as contact details, photos, and more.
Google’s ability to display this information to potential customers will increase its advantage over Yelp. Google is the most powerful competitor Yelp has faced since its foundation.
Google is one of the greatest threats to Yelp because Yelp has the most popular search engine and is a well-liked program used worldwide.
When a user types a search term onto Google, Google searches worldwide to find the most relevant results.
Google displays a list of cities a business serves when people search for it on the web and write a review. When people write reviews for a business, Google lists all of the people who reviewed the business.
Over 2.85 billion users access Facebook monthly, making it the largest social media network.
Facebook recommends a variety of paid advertising options on its platform. There are more than 400 million Facebook users in India, 240 million in the United States, 140 million in Indonesia, and 130 million in Brazil.
Facebook saw its revenue grow 21.6% to $85.96 billion in 2020. Facebook is very well known since its digital ads unit is the company’s main source of income.
Facebook already offers reviews on its platform but has now integrated the feature to offer businesses more recommendations.
Facebook reviews businesses by asking users to rate them and asking if they would recommend them to others.
In contrast to Yelp, which allows users to give a five-star rating to businesses, Facebook asks users to say Do you recommend this business?
Facebook allows its users to ask friends to recommend businesses to them and allows businesses to accept or reject recommendations from other users. Facebook asks users if they would recommend a certain business to others. Users respond with either yes or no.
More than 95% of Facebook users access their accounts from their mobile devices. Facebook now offers a service called Facebook Recommendations that allows people to ask others to recommend businesses to them. That is more accessible than Yelp.
Facebook has more than two billion users worldwide and is a great marketing tool for companies with a global presence. Facebook offers many recommendations to its users. It is also different than Yelp.
Facebook is expected to account for around 73.72% of all social media site visits in the United States by the end of the year.
Statcounter estimates that, by the end of 2020, Facebook will hold the largest market share of the global social media market, 75.27 %. The social media giant had approximately 2.93 billion active users worldwide in April 2022.
These statistics suggest that Facebook is very popular. Social media is a great way to stay connected with friends and family and a great marketing tool for businesses.
Facebook allows businesses to create free business pages for their products and services. They also offer paid advertising services.
Facebook provides a feature that allows users to ask other users for their opinion and read reviews from others. It is similar to Yelp but integrates seamlessly into the main Facebook platform.
Yelp has its dedicated website and mobile app, but Facebook recommendations are only one of the many features that Facebook offers.
Facebook is appealing to businesses because of its userbase, and its paid advertising services help businesses reach a larger audience. Facebook offers paid advertising services to enable businesses to reach a larger audience.
Facebook is a strong competitor to Yelp in attracting businesses to advertise on its site. Yelp lists over 5 million businesses, while Facebook lists over 60 million businesses. Facebook has more than 60 million business pages, which gives Facebook an edge over Yelp.
Meta, previously known as Facebook, Inc., had a revenue of $117.929 billion in 2021, up from $85.965 billion in 2020. The company generated $117.929 billion in 2021, a 57.67% increase from the previous year. Yelp has a competitive advantage over Facebook because it focuses on local businesses.
The TripAdvisor travel site receives more than 859 million reviews and opinions annually from 8.6 million business owners. TripAdvisor has its website and app, just like Yelp.
There are around 463 million people who use TripAdvisor every month to book hotel rooms and transportation.
With TripAdvisor, you can find and book travel accommodations through many of the same features as Expedia.
A TripAdvisor feature allows users to list and review local hot spots in popular tourist destinations, such as restaurants, nightclubs, sports venues, and unique shops. The company’s offerings are sure to please tourists, and I am sure locals will enjoy them as well.
TripAdvisor generated revenues of $1.5 billion in 2019; however, its value will be less than $604 million in 2020 due to restrictions on travel.
Yelp and TripAdvisor both allow users to post reviews of restaurants. TripAdvisor offers reviews of all kinds of businesses in the hospitality industry, including hotels, restaurants, experiences, and airlines.
On June 21, 2021, TripAdvisor launched The Plus, which offers travelers discounts on hotel reservations.
The TripAdvisor subscription service costs only one hundred dollars annually and offers discounts at more than 100,000 hotels worldwide. The program allows subscribers to save money on more than 1,000 hotel rooms annually.
TripAdvisor Plus is a great way for travelers to save money by booking hotel rooms. This affordable service saves the customer an average of $350 per stay. TripAdvisor is a formidable competitor to Yelp and the best travel site for travelers and travel agents.
Yelp is an attractive competitor, and TripAdvisor was established in 2000. TripAdvisor is a travel agency located in Needham, Massachusetts.
Its restaurant listings are helpful and use a withdrawal strategy to persuade consumers to try the best restaurants.
TripAdvisor’s structure makes it far more pleasant than Yelp’s restaurant ratings, which vary from restaurant to restaurant. When you find a decent ranking list of the top restaurants, you can list ten restaurants you should try.
The Yellow Pages have listings for businesses within various areas. You can find contacts and read reviews of businesses. The yellow pages were consumers’ primary source of business information before the Internet age.
They offered lists and reviews of businesses in different sectors. It has changed in the past, from being printed on paper to being accessible online.
Many countries have national telephone companies that own and operate the Yellow Pages. Canadian Yellow Pages is one of the world’s most profitable and integrated directories.
Yellow Pages has more than 100,000 businesses listed. Many consider it the most comprehensive business directory in the world.
Yellow Pages Canada generated $107 million in revenues in the year 2000. Online yellow pages allow users to leave reviews and provide ratings for businesses. Yelp has more reviews and ratings for businesses than Yellow Pages.
Angi (Formerly Known as Angie’s List)
Angi was previously known as Angie’s List but now allows its users to provide more detailed reviews of companies than Yelp.
Similar to Yelp, Angi also allows users to give reviews to local businesses and contractors. It is estimated that Angi’s revenues will increase by 10.7% in 2020 to $1.47 billion.
Angie’s List rebranded its website, and the parent company changed its name from Angi Homeservices to Angi Inc.
Users of Angi can rate businesses based on five criteria, with an A being the best and an F being the worst.
Angi redesigned its website in 2016 to allow consumers to search for contractors, make payments for services, and share photos with others.
Angi launched a new app to help it reach a larger market of potential home service providers. It already claims to have reached more than $500 billion in market value.
Ratings in each category are averaged together to create an overall rating for the user. The user receives a rating for the company by adding all ratings together.
Angi has greatly improved over Yelp. Angi has roughly 250,000 businesses that are available to hire. The number of US households that use Angi for home improvement services will increase to 18 million by 2020. Angi is better than Yelp in finding businesses that provide home improvement services.
Angi doesn’t come for free, but many businesses listed on Angi have regular discounts or special offers, so it works.
HomeAdvisor connects homeowners with service providers of home improvement services. Customers can compare home service providers’ prices based on their past work on the website.
HomeAdvisor allows consumers to compare and choose home improvement service providers based on their cost and the reviews that previous clients have written about them.
A homeowner can access HomeAdvisor through the website or the app on their mobile device. HomeAdvisor employs about 2,000 people.
HomeAdvisor publishes its annual True Cost Report every year, which breaks down the actual costs of home improvement projects for homeowners. This report reveals the cost of home improvement projects so homeowners can make informed decisions.
The True Cost report from 2021 analyses how current events will affect home improvement costs.
HomeAdvisor is a company that is part of ANGI Inc., one of Yelp’s top competitors. It offers homeowners a superior way to find and hire home improvement professionals.
HomeAdvisor is a better alternative to Yelp for homeowners and businesses that perform home improvement work.
Groupon connects customers with local merchants. This website also offers discounts and group discounts on products and services.
With Groupon, you can save on products and services across more than 15 countries through discounts, cashback, and group deals. Groupon generated revenue of 1.417 billion in 2019.
Groupon helps consumers connect with local merchants by offering coupons and deals. A Groupon website and app allow users to find and apply for discounts and group deals on various products and services.
Groupon also allows merchants to offer coupons and group deals in 15 countries. The average annual revenue of Groupon grew to 1.417 billion dollars in 2020.
Yelp and Groupon help restaurants and shops gain new customers. Yelp’s EV is 1.8 times sales, while Groupon’s is 0.8. Groupon is better at EV/Sales multiplier than Yelp.
Groupon is less threatening by Google and Facebook than Yelp. Groupon is a unique strategy for attracting consumers. Groupon is comparable to a local Yelp competitor.
Yelp and Groupon help restaurants and manufacturers reach customers by providing them with reviews and promoting their products and services. Yelp has a net worth of 1.8 times its sales, while Groupon’s is 0.8.
The EV sales multiple on Groupon is lower than that of Yelp, and that helps it outperform Yelp. Groupon does not compete with internet giants like Google and Facebook and is a worthy competitor to Yelp. Because of its unique position in the marketplace, Groupon is a worthy competitor to Yelp.
Nextdoor is a social media app that allows users to make suggestions for local businesses like Facebook.
Nextdoor supports local businesses by providing them with the tools to organize events and share information.
The value of Nextdoor has grown from around $2 billion in September 2019 to $4.3 billion in 2021 in just two years.
Nextdoor is a company ready to enter public after completing a 4.3 billion merger with Singapore Public Assets Corporation.
The company hopes to raise $686 million from the merger to increase its gross proceeds from the transaction and improve its competitive advantage over Yelp. In 2019, the number of people who use Nextdoor to do their daily tasks increased by 50%.
Nextdoor is used by more than 275,000 neighborhoods all over the world. Nearly one in three Americans use Nextdoor, and in the US, almost all homes use it.
As Nextdoor becomes a public company, I expect this number to grow exponentially. Nextdoor is a better option for selling items and services in your neighborhood than Yelp, which many people prefer.
Zagat is an unrivaled competitor of Yelp. It helps people find restaurants and provides them with reviews. The best restaurant review and rating option is the Zagat site.
Zagat operates in the same software sector as Yelp. Zagat earns 2.08 percent of Yelp’s revenue, making it one of its largest competitors.
Zagat is a competitor to Yelp. It is based in New York City and was founded in 1979. Zagat works for the company that produces Yelps software and brings in about two to eight percent of Yelps revenue.
Zagat’s website collects and correlates review ratings of restaurant people who have dined at those restaurants.
Zagat offers information on a range of topics, such as local news and reviews, and lets users create and share maps of restaurants.
The web browser improves the user interface of Zagat.com and provides more restaurant recommendations.
Google acquired Zagat for over $150 million in 2011 and integrated it into our Geo and Commerce group.
Google sold it to an investment firm called The Infatuation in 2018 for an undisclosed amount. Zagat commissioned The Infatuation to produce a guide for its 40th anniversary in November 2019.
Zagat will launch in Miami on January 20, 2019, as a digital guide to restaurant ratings. Zagat now uses a scale of 1 to 10 to rate restaurants and offers restaurant recommendations.
Zagat is an excellent alternative to Yelp to get recommendations for restaurants and write reviews.
The social media features of MerchantCircle help local businesses connect and their customers.
MerchantCircle users can find local businesses and compare their prices and promotions. They can read other members’ reviews and give other users tips on how to do almost anything.
Businesses are assigned Merchant Scores based on how people rate and review businesses and how much businesses genuinely engage with the community.
You can track how often businesses post blog posts, send out newsletters, offer special deals, or simply keep your information current and accurate by keeping track of the number of likes they receive on Facebook.
Conclusion on Yelp Competitors
Numerous firms compete for customer traffic, and their data quality and reliability significantly impact the number, quality, and relevance of the information they provide. The quality of the materials used is also important.
Many businesses using our brand and notoriety that it has acquired in the marketplace are competing for advertising dollars nearly weekly.
When choosing such a company, it is important to consider the target audience’s size, the advertising solutions’ effectiveness, and the pricing structure.
FAQ about Yelp
What Does Yelp Do?
Yelp hopes to connect people with local businesses by offering people the opportunity to share their experiences online. It is a method for companies to communicate with their customers and share their annual reports.
What will be the Future of Yelp?
Yelp is a useful online business directory that helps you find nearby businesses. Yelp’s platform is responsible for 98 percent of the company’s total revenue, with an estimated $1.1 billion in sales by 2020. The company’s overall revenue is only 2% since it no longer actively invests in deals.