ReachLocal Announces New ‘Commerce’ Deal with Yelp

reach_commerce_logoThis afternoon ReachLocal announced that Yelp will adopt ReachCommerce, its recently launched online booking platform, in the home services category on the review site (there are actually something 100 sub-categories). My understanding is that this is an exclusive relationship.

It thus emerges as a coup and big validation for ReachLocal’s new commerce platform. Yelp is seen as the “anchor tenant” in a broader network strategy for ReachCommerce.

I don’t have any screenshots but the integration will probably be not that far removed from Yelp’s current OpenTable functionality (who knows how much longer that will be around in the wake of the SeatMe acquisition.)

Screenshot 2013-08-06 at 11.40.35 AM

Merchants who’ve integrated ReachCommerce will be able to book appointments directly through their Yelp profiles. They must have claimed their Yelp profiles first, however.

ReachLocal will be selling ReachCommerce and no doubt heavily promoting Yelp in that process. I’m not sure whether Yelp will be promoting ReachCommerce to its “active merchants,” of which there are now 51,400 (per Q2 earnings).

The ReachCommerce deal is consistent with other moves Yelp is making in accordance with its recently announced Yelp Platform transactions initiative. ReachLocal declined to discuss financial terms of the relationship.

ReachCommerce is a SaaS platform that ReachLocal says can “digitize and automate [the] entire customer experience” including all back-office operations. It also integrates with marketing, notifications, invoicing and payments.

ReachCommerce and the Yelp partnership are prime examples of a trend that I’ve now written about repeatedly and mostly recently called the “E-Commercification of Local.”

Update: ReachLocal releases Q2 results: $127M or 13% YoY growth.

Screenshot 2013-08-06 at 1.31.45 PM

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One Response to “ReachLocal Announces New ‘Commerce’ Deal with Yelp”

  1. Service Central says at

    Google. stand up and pay attention. This is a big deal!

    Only a couple of years ago Google (aka Marisa Meyer) was trying to tackle “Local” and realised that it needed a big local sales force to do this. It tried to buy Yelp (fail) and then tried to buy Groupon (fail) both of which had big local sales forces. Instead it gave up and decided to rely on third party sales forces (like Reach Local) to sell Googles ads to local SMB’s for them.

    Now with Reach Local moving away from selling Google ads, and starting to sell to SMB’s what they really want (customers and not clicks), Google is in very big trouble. Without their own dedicated local sales team they will lose the SMB market alltogether.

    Great work Yelp & Reach Local for taking on the beast and winning!

  2. Small Businesses Blue Oceans says at

    […] Spain but follow all news about local online advertising business in the US. A few days ago I read this post from Greg Sterling about Yelp and Reachlocal partnership […]

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