Yelp makes money from fees and ads tied to service providers|ajay_suresh|CC BY 2.0
Yelp has agreed to acquire RepairPal, an auto services website, for $80 million in cash by the end of the year. The move comes as the restaurant review site looks to expand its business.
Cofounder and CEO Jeremy Stoppelman said the deal spreads the company’s “offerings in the multi-billion dollar US auto services advertising vertical.”
He also noted that RepairPal has generated approximately $30 million in revenue and is cash and net income break-even.
San Francisco-based RepairPal was founded 17 years ago and has a strong partner network, including CarMax, USAA and Endurance Vehicle Services. All its employees, excluding the founders, will join Yelp.
Over the past few years, Yelp has pushed into broader home services, such as connecting users with repair professionals.
Yelp makes money from fees and ads tied to service providers and recently reported 11% year-over-year growth in advertising revenue, reaching $228 million in Q3.