Yelp co-founder: Entrepreneurial inspiration stems from the process of seeking medical care

The Wall Street Journal said this week to http://www.aliyun.com/zixun/aggregation/31650.html "> US reviews Web site Yelp co-founder Jeremy Stopelman (Jeremy Stoppelman) was interviewed. Stopelman revealed the reasons for the creation of Yelp, how to increase revenue, and how to help businesses turn their bad reviews into better customer service.

When Yelp was founded, Stopelman was a student at Harvard Business School. When he explores promising entrepreneurial ideas, he happens to have the flu. In the process of seeking medical treatment, he discovered the business opportunity, then set up Yelp. MRL Venture Capital offered him 1 million dollars, and he and former PayPal colleague Lasse Simons (Russ Simmons) launched the site in October 2004.

So far, users have posted more than 33 million comments on Yelp about doctors, restaurants, florists, car stores and other service companies. Last month, Yelp acquired a German counterpart, Qype. In September this year, Yelp launched in Singapore, the company's first foray into Asia. Mobile apps Search accounts for 45% of the number of Yelp searches and also drives Yelp's growth.

But with the company's expansion, the cost is still higher than advertising revenue. The site does not charge users. Yelp expects revenue to reach $136.9 million this year. On November 1, Yelp reported a loss of $2 million trillion in the third quarter, down from a year earlier. The company's shares fell 15% per cent on the first trading day after the earnings were released. This is the biggest drop since Yelp's March IPO.

The following is a summary of the interview:

Where does the idea of creating a Yelp site come from?

When I was in business school, I was in the business incubator. I was ill and needed to see a doctor. It was disappointing to me that there was very little information on the web. We realize that the best way to find a doctor or other service is through word of mouth.

Where do you come from to set up this website?

Max Lev (founder of Max Levchin,paypal). He (through MRL) gave us 1 million dollars to start funding. Simmons and I identified the idea at a lunch, and I made a presentation to Leo that afternoon.

When did you feel it was really promising?

The first time the idea was in February 2005, when we launched a new version of the site, let users share their comments. It was the first time we saw other users sharing comments, not just our friends or family.

Two years ago, you turned down Google's takeover. Do you feel sorry?

As an independent company, the continued success of Yelp is that we make the right choices, and nothing is more valuable than going our own way. My focus is on the passion to solve problems--to help people in small local businesses. This is very important. It will never be an economic entity that is sold only to the highest bidder.

What prompted you to make your decision to go public?

Listing is the only way for companies that venture capital supports. In order for the company to remain independent, it must be sold or listed.

Why choose to expand globally? Is the cost too high?

Both at home and in Paris, you should be able to find the best things in the city. We need to sow the seeds of the world and watch them grow. All this will have a positive impact on income.

How should Yelp businesses deal with bad reviews?

Yelp should be a reflection of customer service. Businesses that understand this truth and provide excellent value and service are reflected in their Yelp pages. But perfection is impossible. Even the best businesses may occasionally get a bad rating. This is unavoidable. On Yelp, we offer free tools to contact consumers privately or openly. Usually, it has a positive effect.