In 2011, Google (NASDAQ:GOOG) acquired Zagat in a bid to compete with Yelp (NYSE:YELP) and OpenTable (NASDAQ:OPEN) in the restaurant review space. Last week, the company announced the launch of Google+ Local, which is integrated with listing information from Zagat. Google+ Local offers a repository of information on restaurants with features such as Zagat scores and recommendations from your friends on the Google+ network. 
The service will be integrated into Search, Maps, Mobile and will be available as a separate tab in Google+. With this launch, Google now competes directly with Yelp, who is the leader in the space. In addition to providing reviews and ratings, Google+ Local has a social component as well and leverages your entire friends and family network to provide the most relevant recommendations and opinions.
This new service can be hugely profitable for Google if it can attract a substantial user base. Search advertising accounts for almost 70% of Google’s overall value with mobile search ads accounting for a significant portion of that 70%. Over time, Local search ads could become a larger portion of the mix depending on the success of Google+ Local.
We currently have a $680 Trefis price estimate for Google, which is nearly 20% above its market price.Notes:
- Local—now with a dash of Zagat and a sprinkle of Google+, Google Blog [↩]