In a report published Friday, Macquarie Capital analyst Tom White detailed an analysis of Yelp Inc's YELP listings of local businesses in categories where the company launched its "Platform" transaction/eCommerce initiative.
Here are his findings:
Six percent of leading U.S. Beauty and Spas have online scheduling enabled on their Yelp pages, up from 4.5 percent in January.
Use of "call-to-action" ads among sampled merchants rose to 20 percent from 19 percent in January.
Around nine percent of all Beauty/Spas merchants now feature a "deal" on their Yelp page (flat versus January).
Market News and Data brought to you by Benzinga APIsRestaurants:
- 47 percent of the most reviewed Delivery Restaurants across the 15 largest U.S. cities currently have online ordering enabled on their Yelp pages, marking a modest increase from 46 percent in January.
- Of the most reviewed take-out restaurants, Platform penetration ticked down for the third straight quarter to 4.7 percent from 5.3 percent in January and 5.8 percent last September.
- In major cities (Boston, Chicago, Los Angeles, New York City, Philadelphia and San Francisco) 10.3 percent of all restaurants offer online ordering on their Yelp pages, up from nine percent in January.
Beauty/Spas:
Hotels:
- Approximately 65 percent of leading U.S. hotels offer online bookability on Yelp, marking a decrease from 69 percent in January.
- Including Yelp's entire hotel directory across the 15 largest cities, 27 percent of hotels offer bookability on Yelp (ranging from 38 percent in San Jose to 20 percent in San Antonio
Final Thoughts
Transaction growth momentum will "hinge" on Yelp adding new partner and categories along with better consumer awareness of the Platform functionality. However, transactional revenue to Yelp from Platform will likely remain "small" in the near-term. Shares remain Outperform rated with an unchanged $62 price target.© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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