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Yelp Launches In Turkey As It Continues To Expand In Europe
12/31/2012 11:04:00 AM
Online recommendation site Yelp ( YELP ) recently expanded into Turkey, one of the largest economies in Europe. This move comes after its launch in Poland in late October. Yelp's efforts will initially be concentrated in Istanbul even as the full-featured site will be available to all Turks across the country and will support English, Danish, Dutch, French, Finnish, German, Italian, Norwegian, Spanish, Swedish, Polish and Turkish, providing users access to local insights in any one of these twelve languages.
The Polish site will initially concentrate on Poland's capital Warsaw and the cultural capital of Krakow before expanding to the rest of Poland. It will also open up the market to nearly 20 million Poles living outside the country.
Yelp generates revenue mainly from local business advertising, display advertising and from additional services like Yelp deals, and deals with reservation services like OpenTable ( OPEN ). The site features services such as business search, review and recommendations on local businesses and enables customers to access ratings and read reviews and opinions about local hotels, restaurants, dentists and mechanics, etc. Local businesses are reviewed and rated by customers who become contributors to the website.
Europe Growth Continues
Turkey and Poland have fared reasonably well compared to many of its European neighbors following the debt crisis that is still gripping Europe and is a key factor for Yelp's expansion into the country. People will be able to create accounts on Yelp's local site to provide feedback, reviews and share opinions about local businesses and services. Yelp's iPhone and Android applications will be available as well as its free suite of business owner tools: Yelp for Business Owners. This makes Poland the nineteenth country in the world to have access to Yelp.
Currently, an estimated 25% of unique users come from mobile phones, and Yelp mobile applications are being used on 7.2 million devices each month, up 70% year-over-year. Yelp does not run any ads on its mobile app and has no monetization through this platform. As it expands into the rest of Europe, we expect more traffic from the mobile app in the future. Yelp supports English, Danish, Dutch, French, Finnish, German, Italian, Norwegian, Spanish and Swedish, and we expect more local language integration if its European expansion is successful.
We currently have a $15 Trefis price estimate for Yelp, which is nearly 50% below its current market price.