Product search and pickup service company Curbside recently announced that it will join Yelp in a new partnership.
Curbside makes it easier to find, buy, and pickup products from nearby stores. Its app searches real time local inventory across retailers and uses location-based technologies to alert stores when a customer is arriving for a pickup. Curbside also helps consumers quickly get what they need and assists retailers in better serving their increasingly mobile-centric customers.
“The way things are going, consumers are spending time on properties like Yelp. It’s more cost-effective and a better customer experience to be reaching them in the context of where they’re living, essentially,” says Curbside CEO Jaron Waldman.
The timing of Curbside’s partnership with Yelp is pretty fortunate. Yelp launched its own food delivery business recently. Earlier this month, the company said it was going to strike a deal with GrubHub. Yelp also made a deal to sell Eat24, an online food-ordering business, to GrubHub, the parent company of Seamless and MenuPages. The deal is worth $287.5 million, which is expected to be paid in cash and will allow Yelp users to order online directly from GrubHub.
“Yelp doesn’t need to be in the business of delivery and logistics. Instead, we can work with great partners who specialize in fulfillment. We plan to continue adding new partners and products in the future, including Platform partnerships such as Curbside,” says Peter Curzon, Director of Business Development at Yelp.
As for the Curbside deal, Yelp would make a revenue-sharing agreement in which Yelp gets a cut from the transactions occurring on Curbside’s platform. Both companies declined to disclose the specifics of the deal.
Last quarter, Yelp witnessed a double-digit increase in advertising and transaction revenue while the number of reviews grew to about 135 million. CEO Jeremy Stoppelman highlighted the company’s mobile app which is on 22% more devices than a year ago, as part of what is driving Yelp’s growth.
The company expects its streak to continue. It expects this year’s revenue to range between $855 million to $865 million, which is slightly above the $856 million that’s expected by analysts.