Yelp Is Ready To Review The Singapore Sling With Asia Expansion

by Trefis Team
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Yelp (NYSE:YELP) is one of the largest online recommendations site and has expanded into Asia by launching in Singapore. The site features services such as business search, review and recommendations of local businesses and enables consumers to access ratings and read reviews and opinions about local hotels, restaurants, dentists and mechanics etc. Local businesses are reviewed and rated by customers who become contributors to the website.

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). The launch in Singapore was due to the fact that it has one of the highest per-capita gross domestic products in the world and is one of Asia’s top cosmopolitan cities. [1]

Check out our complete analysis of Yelp

Asian Growth Opportunity

Singapore has high broadband and mobile internet penetration, which will help drive Yelp’s review business. The country also has the world’s third highest per capita income, a huge expatriate population and a population of about five million. English is one of the major common languages and these factors make it an attractive market expansion opportunity. [2]

Yelps Challenges

Currently, an estimated 25% of unique users come from mobile phones, and Yelp mobile applications are being used on 7.2 million devices each month, up 70% year-over-year. Yelp does not run any ads on its mobile app and has no monetization on this platform. As it expands into Asia, we can expect more traffic and we can expect significant revenues from the mobile app in the future. Yelp supports English, Danish, Dutch, French, Finnish, German, Italian, Norwegian, Spanish and Swedish and we can expect more local language integration if it’s Asian expansion is successful.

We currently have a $12.20 Trefis Price Estimate for Yelp, which is nearly 50% below its current market price.

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  1. Slinging Into Asia,, Sept 13, 2012 []
  2. Yelp Launches In Singapore,, Sept 13, 2012 []
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