Google Shoulda’ Woulda’ Coulda’ bought Yelp

The search giant could have dominated the online review market with Yelp's data and advertising platform.

Yelp. The very name conjures up images of raucous crowds, fiery opinions, and a whirlwind of online reviews that can make or break a local business. It's a world where the voice of the people holds immense power, and one company has managed to harness that power like no other: Google.

Photo by Eaters Collective on Unsplash

Google, the behemoth of the internet, with its insatiable appetite for data, should not have resisted the allure of Yelp. With over 145 million monthly active users, Yelp stands as the undisputed king of online review sites for local businesses. And with that kingdom comes a wealth of valuable information—ratings, reviews, photos—that could be used to bolster Google's local search business.

Imagine the possibilities. Google, armed with the trove of data from Yelp, could revolutionize its local search results and improve its own reviews on business listings in Search and Maps. No more sifting through a sea of mediocre businesses, hoping to stumble upon a hidden gem. With Yelp's data in tow, Google could curate a more personalized experience for its users, ensuring that they find the businesses they're truly looking for.

Photo by Solen Feyissa on Unsplash

But it doesn't stop there. Yelp's advertising business, a formidable force in its own right, generated over $1 billion in revenue in 2022. And Google, with its insatiable hunger for growth, could have tapped into that goldmine to expand its advertising empire even further. By leveraging Yelp's advertising platform, Google could have reached a wider audience of local businesses, cementing its dominance in the digital advertising space.

Yet, the allure of Yelp wasn't solely rooted in data and revenue. It was the tantalizing prospect of leaving competitors in the dust. Yelp, the lone wolf of the online review market, had managed to elude the clutches of search engine ownership. And that gave it a distinct edge. If Google had successfully acquired Yelp, it would have solidified its position as the undisputed heavyweight champion of search engines, with no real challenger in sight.

Sure, there were naysayers, those who cautioned against the risks of such an acquisition. They argued that Google's market power could be wielded as a weapon to stifle competition in the online review market. But I, in my erratic and twisted wisdom, believed that the potential benefits far outweighed the risks. In my eyes, Google should have pursued Yelp with unbridled tenacity, seizing the opportunity to reshape the digital landscape.

And let's not forget the hidden potential that lay within Yelp's data. Google's insatiable appetite for knowledge could have used Yelp's treasure trove to enhance its artificial intelligence capabilities. By training AI models with Yelp's data, Google could have unlocked a new level of understanding, allowing it to provide search results that were not only relevant but truly personalized. The days of sifting through endless search results could have been replaced with a streamlined and tailored experience.

In the end, the opportunity slipped through Google's fingers. Yelp remains an independent titan, standing tall in the online review market. But the question lingers: what could have been? The potential for Google to improve its local search business, expand its advertising empire, and gain an unprecedented advantage over its competitors was tantalizingly within reach.

Yelp, a public company, is up 31% this year, but down almost 9% over the last five years. I’d say Google missed an opportunity to buy Yelp on the cheap while utilizing and enhancing review data and clicks.