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Yelp Is Not Competing With Groupon

by Matthew Zuras on July 27, 2010 at 03:45 PM

groupon catTechcrunch reports that Yelp has been quietly experimenting by offering local deals to users in a select few cities. In a bit of misplaced hyperbole, the site claims that "Yelp Gears Up to Take on Groupon." But is that the case? No, we don't think so.

Yelp reported back to Techcrunch that it had indeed run "a short test in Sacramento" for Papillon Salon. But Yelp also noted that it has "hosted a number of marketing programs all across the U.S.," including the ongoing Yelp Drinks, over the past several years. Should the Groupon cat be shaking in his blinged-out boots? We doubt it. Yelp's primary revenue comes from ad sales and listing fees; while it makes sense for Yelp to jump into Groupon's market, the company hasn't shown an interest in competing with Groupon. (That, of course, may change in the future.) So, while we suggest that deal-searchers scour both sites, Groupon is probably still your best bet for now. Then head to Yelp to vet that dental surgeon before you buy the ridiculously discounted set of new chompers. [From: Techcrunch]

Tags: consumer, discount, groupon, marketing, OnlineDiscounts, retail, top, yelp

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