Analysis of operation and business model of review website Yelp

time in the morning of March 2nd, the U.S. consumer comment site Yelp determine the issue price of IPO $15, higher than the previous $12-14 issue will be the interval. Yelp will land on the NYSE in March 2nd and share code YELP, issuing 7 million 150 thousand shares of common stock. At a $15 issue price, Yelp financing amounts to $107 million, and the market capitalisation will reach $898 million. Goldman Sachs is the lead underwriter of IPO, Citigroup and JefferiesGroup as sub underwriters.

Yelp on the eve of the listing, we will from the development history, operations and business models, financial status and market challenges and other aspects of its sort.

one, develop history,

Internet has just entered the 2000 years, the UGC model began to rise. Wikipedia was founded in 2001, then led to a batch of 2 companies continue to form the birth of user provided content based information retrieval and recombinant form.

2003, the public comment network was born in Shanghai. In 2004, Yelp started in San Francisco. At this point, the review site in the United States is not new, the establishment of more than 10 years of CitySearch in the U.S. Internet review market at the time of the boss, while there are a number of new sites are also under review.

but the new Yelp began to develop rapidly in the San Francisco area. Compared to the traditional sites, Yelp has made some changes: first, the real user comments, in particular, focus on "a handful of" enthusiastic users attracted by comments. Create accounts, fill in resumes, add friends, write reviews, Yelp users basic actions; two, through various forms of interaction between users, and give excellent users reward". Such a model soon distinguishes Yelp from CitySearch, which values expert reviews and sits waiting for anonymous user comments.

Yelp established its San Francisco market in its first year and became the entertainment guide for the new generation of local Internet workers, while the first batch of users began to bring a lot of content to Yelp. To this day, the San Francisco Bay area still accounts for 30% of all Yelp activity. The following major local markets are Losangeles, Chicago and New York.

2010, Yelp expansion speed is not fast, every year the new market is not more than ten years.2010, Yelp accelerated expansion of.2010 and 2011, respectively 22 new local market. By the end of 2011, Yelp has a total of 71 local market, 25 of which are located in areas outside the United States, including Canada, Britain and France and other European countries and australia.

and participate in the review of business services category, Yelp has been extended from pure dining to life service categories, including dentists