Yelp’s Hangout Joins the Facebook Parade
In another example of cooptition, the niche social network / food & entertainment review site has established a presence on Yelp with its Hangouts application. The app is not much to write home about but it is a good example of outside companies finding value in joining the Facebook ecosystem -- and integrating in a complementary way. Yelp is well-focused on reviews and Facebook won't be stealing any of their users. Rather the move is a recognition that Facebook is the becoming a requisite part of online identity and so members of the Yelp tribe should connect there too. Facebook also a makes a good venue for passive marketing though we don't expect the growth to be anywhere as explosive as iLike's because of the local and physical nature of hangouts.
Hangouts creates a widget that tells profile readers where you'll be and your favorite hangouts based on your inputs. In this way, Hangouts is a profile extension much like the events calendar on MySpace. Scenesters use the calendar on MySpace to bolster their status by announcing the stream of shows they plan to attend. I also expect Hangout to be more a status tool than a form of passive invitation.
The venues listed in Hangouts derive from entries in the Yelp database. Clicking them on the Facebook profile leads to a Facebook landing page with ratings, venue information, and other app users / members with the same interest, in similar fashion to iLike. The venue links on the landing page lead back to the Yelp mothership. The integration of the two platforms is quite natural.
Hangouts seems to be someone's side project at Yelp because it bombs with an error when I try to make entries or often when I click anything on the profile. I'm sure they'll get it right. However, given the open field and relentless introduction of new applications everyday, they should get it right sooner than later. Hangouts is gravy to the loyal Yelp user base, but the real danger of complacency is someone coming out of nowhere iLike-style to take the local space on Facebook.

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