- Yelp’s integration into Apple Maps demands more investor scrutiny
Apple’s vulnerability with its problematic map application is undeniable. All too often, directions are wrong or location data is missing. Apple’s CEO, Tim Cook, has apologized for the Apple Map’s inadequacies.
- It’s increasingly apparent that Yelp’s flaws contribute to Apple Maps’ flaws
Anyone with a Yelp account can add or influence venue data. This may range from the business’s location to its operational hours -- all without independent verification by the business in question. By comparison, Google (GOOG) requires business owners to confirm their location. Google Maps employs a method known as crowdsourcing.
According to GigaOM, Yelp’s user-based approach results in multiple venues entered, prospective businesses that add data but never open, and businesses that are closed but never get removed from Yelp. GigaOM cites a very telling example involving a Napa Auto Parts location. A search of Apple’s Maps found one Napa Auto Parts store in a small California city that had 13 reviews from Yelp users. However, Apple Maps showed that particular location as a pizzeria and there was no mention of Napa Auto Parts,
Yelp’s approach with hidden reviews and out-of-date businesses will continue to degrade search results and more customer use or map quality improvements wont fix that problem.
- Here’s why Yelp’s method of curating posts presents a further problem to Apple Maps
We still see too many negatives outweighing the positives for Yelp. Refer to our recent overview, Does Yelp Need Help.
We continue to urge investors to avoid Yelp. If you’re a current shareholder, sell on a bounce. With or without Apple Maps, we remain bearish on Yelp.