Yelp has announced an agreement to acquire RepairPal, a San Francisco-based site for car repair estimates, for $80 million in cash. The acquisition is projected to close by the end of the year, pending standard closing conditions. This strategic move marks Yelp’s ambition to further cement its position in the home services sector, broadening its reach into the lucrative auto services advertising market.
RepairPal, established 17 years ago, has garnered significant attention and investment, raising $21.3 million from notable investors including Cars.com and Tugboat Ventures. The company generated approximately $30 million in revenue and maintained a break-even status in cash flow and net income. While Yelp plans to integrate all of RepairPal's employees into its operations, the founders—Aaron Tavistock, David Esser, and David Sturtz—will not be joining the Yelp corporate team.
"We believe there are clear synergies between Yelp and RepairPal."
- Yelp
RepairPal brings with it a wealth of expertise in auto repairs and pricing, knowledge that Yelp aims to leverage to enhance its offerings for auto services businesses. Additionally, RepairPal's robust partner network, which includes CarMax, USAA, and Endurance Vehicle Services, will be a valuable asset to Yelp as it seeks to expand its influence in the auto services domain.
"We believe RepairPal will accelerate our broader services efforts by expanding our offerings in the multi-billion dollar U.S. auto services advertising vertical."
- Jeremy Stoppelman, Yelp’s co-founder and CEO
Yelp's advertising revenue from service businesses showed an impressive 11% year-over-year increase, reaching a record $228 million in the third quarter of 2024. The home services category experienced a growth of approximately 15% during the same period. These figures underscore Yelp's growing influence and success in service-related advertising.
The acquisition is seen as a favorable exit for RepairPal, which has operated independently for nearly two decades. Yelp's proficiency in search engine optimization, search engine marketing, and AI is expected to provide added value to RepairPal's existing framework.
