Will Yelp Survive the Coronavirus?
Yelp — the verb-inspiring app that has transformed how we eat, shop, and approach businesses in general — might not survive the coronavirus.
When restaurants and bars closed last month, I didn’t immediately consider how the tech industry would be impacted. After all, Yelp, a quintessential San Francisco tech behemoth, saw $1 billion in revenue in 2019.
Yet, when Yelp recently announced its mass layoffs, I wasn’t surprised, considering how its business model relies on advertising dollars from brick-and-mortar retailers — many of which are closed or struggling themselves.
Despite the government’s mixed messages, the end of the coronavirus lockdowns seems unlikely to manifest in the next few weeks. As Yelp’s revenue stream dwindled and bad PR stories exacerbate the restaurant industry’s existing disillusionment towards the company, will the coronavirus crisis mark its end?
What did they do?
On March 20th, Yelp announced that it would be providing $25 million in assistance to struggling local restaurants and nightlife businesses impacted by the pandemic. However, this was not a cash grant, but $25 million worth of “waived advertising fees, and free advertising, products and services,” such as three months of access to Yelp Reservations and Waitlist.
