OpenTable CEO To CNBC: You Come Because It Is The Best Solution
OpenTable (NASDAQ: OPEN) CEO Matthew Roberts stopped by CNBC on Tuesday Morning, where he said, "you come to OpenTable because it is the best solution."
Yelp (NYSE: YELP) acquired SeatMe in 2013 to directly challenge OpenTable. Yelp announced on Tuesday morning that restaurants who have claimed their Yelp Pages will be able to take reservations with them for free. This compares to the OpenTable solution which costs $99 per month.
As expected, shares of OpenTable sold off sharply. After falling more than 6.5 percent on the announcement, the company’s CEO took to CNBC to defend the company.
In the interview, Roberts emphasized that, “we feel very very confident in our position.”
Reasons Roberts cited for this position are the company’s 15 years of experience and series of innovations. For example, OpenTable recently did a limited launch of its new pay-by-phone feature, which he indicated would be in New York and 19 other markets by the end of the year.
Roberts was also questioned about the cost of OpenTable’s service versus Yelp’s. As noted above, there is essentially no cost to use Yelp’s service. Roberts responded by stating that customers only have to pay for OpenTable when the company delivers, and they almost always deliver.
Shares of Yelp, whose market cap is more than double that of OpenTable, were affected very little by the news, but have since taken a slight hit. Shares are currently down 1.55 percent to $55.72.
Shares of OpenTable are now down 5.64 percent at $65.73.
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