Yelp Inc. is a digital platform that connects consumers with local businesses through user-generated reviews, ratings, and recommendations. The company's core product is its website and mobile app, which host hundreds of millions of reviews across categories such as restaurants, retail, home services, beauty, and health. Yelp's business model is primarily advertising-based, generating the vast majority of its revenue (typically over 95%) from local businesses that purchase targeted advertising campaigns to increase their visibility to high-intent consumers. The company offers cost-per-click advertising, multi-location ads, and sponsored search results.
In addition to advertising, Yelp generates a smaller portion of its revenue from subscription services and business tools, such as Yelp Guest Manager (for reservations and waitlists), enhanced business profiles, and data licensing through the Yelp Knowledge program. The company's advertising revenue is segmented into Services (e.g., home, local, and professional services) and Restaurants, Retail, and Other (RR&O), with Services becoming an increasingly dominant driver of growth. Geographically, Yelp operates primarily in the United States, which accounts for nearly all of its revenue, though it maintains a small international presence. Yelp's competitive position relies on its massive database of authentic, crowd-sourced reviews and its strong brand recognition as a trusted local discovery platform.
