Yelp Bolsters Its Platform with Eat24 Acquisition
Yelp is ramping up its platform with its latest acquisition of Eat24, which is a Web and app-based online food ordering service.
Through the acquisition, Yelp will drive daily engagement in the restaurant vertical and plans to expand Eat24’s offering to the 1 million U.S. restaurants listed on its platform. Eat24 currently provides its services to approximately 20,000 restaurants in more than 1,500 across the nation, enabling them to offer online delivery and takeout services. The platform has a focus on the customer experience and offers 24/7 live chat, email and phone support. The acquisition will also likely amp up the competition between Yelp and other food delivery services, such as GrubHub.
"As more food ordering transactions move online, further integrating Eat24 will enhance our user experience with an easy-to-use product and service that allows our large consumer audience to transact directly with businesses," said Jeremy Stoppelman, Yelp co-founder and chief executive officer. "Eat24 has developed a great solution and unique service that has already added great value to the Yelp Platform. With this acquisition, we gain more tools and expertise to help engage our users from discovery through transaction in a key vertical for Yelp."
The acquisition is valued at approximately $134 million, including approximately 1.4 million shares of Yelp Class A common stock and $75 million cash. The transaction closed on Feb. 9, 2015.
"We're excited to join the Yelp team to deliver an even better consumer experience inside this top destination for finding local businesses," said Nadav Sharon, Eat24's co-founder and chief executive officer. "Yelp has an impressive ability to connect its users directly with businesses. This is an incredible opportunity to further connect with Yelp's highly engaged users and to expand our reach to even more local businesses on its platform."