RepairPal to be Acquired by Yelp as Company Seeks to Expand Auto Services Category

Yelp has just announced the planned acquisition of RepairPal, according to TechCrunch.

The news broke yesterday from an earnings report released by Yelp. The company agreed to acquire RepairPal for $80 million in cash, with the acquisition expected to close by the end of the year.

With Yelp expanding more of its services to connect consumers with services like plumbers, repairmen, and other home service providers, there is potential for RepairPal to further expand that reach to include automotive needs, as shared in a Yelp shareholder letter released.

Yelp generates money through fees paid by service providers for certain leads, as well as ads that run on their website. Its most recent fiscal quarter saw advertising revenue from services businesses rise by 11% from last year, to $228 million. In addition, the home service category specifically saw revenue growth of around 15%.

“We believe there are clear synergies between Yelp and RepairPal,” read the shareholder letter. “RepairPal brings deep knowledge of auto repairs and pricing, which we can leverage to improve our offerings for auto services businesses. They also maintain a robust partner network, including CarMax, USAA, and Endurance Vehicle Services. Meanwhile, Yelp has a large consumer audience and expertise in areas like search engine optimization, search engine marketing, and AI, which we believe will provide value to RepairPal going forward.”