Yelp Allows Check-in Comments To Tap Diners’ Social Networks

Yelp (NYSE:YELP) has launched a new feature which enables users to comment on their friends’ check-ins on the Yelp platform. This allows users to leave instant reviews or tips for their friends when they check into any particular local business establishment. ^[1] 

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Check-in comments are like Yelp’s Tips feature, but they are more private and can be seen only by you and your friends. With updates like these, Yelp is trying to make its platform more social in order to improve engagement, which would drive advertising revenue and also generate additional revenue through auxiliary services like deals and other merchant partnerships.

We currently have a $10 Trefis price estimate for Yelp, which stands nearly 50% below its market price. Here’s why we think Yelp is Only Worth $10.

Yelp is one of the largest online business search, review and recommendation service, which enables consumers to access ratings and read reviews and opinions about local businesses like hotels, restaurants, salons, dentists and mechanics on its website. Local businesses are reviewed and rated by contributors. Yelp generates revenue mainly from local business advertising, display advertising and from additional services like Yelp deals, and deals with reservation services like OpenTable (NASDAQ:OPEN).

It competes primarily with other online business review services like Google (NASDAQ:GOOG) Places, Yahoo (NASDAQ:YHOO) Local, Angie’s List, CityLocal and Gumtree; display advertising players like Google, Yahoo, Facebook and AOL (NYSE:AOL); and daily-deal sites like Groupon (NASDAQ:GRPN) and LivingSocial.

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1. Yelp Check-in Comments, Yelp Blog [↩]