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Yelp’s Next Phase Begins With Hatch—And It’s Bigger Than You Think!

Yelp is doubling down on its artificial intelligence transformation with a major strategic move—its proposed $270 million acquisition of Hatch, an AI-powered lead management and customer communication platform. The deal, announced in January 2026, includes an additional $30 million in employee retention payouts and is expected to close in early February. With Hatch generating $25 million in ARR as of November 2025, Yelp aims to integrate its technology to enhance its enterprise-facing SaaS stack. This acquisition comes amid a broader shift within Yelp’s business strategy, which has increasingly centered on AI-driven innovation such as the Yelp Assistant, Menu Vision, and the recently launched voice AI subscription products—Yelp Host and Yelp Receptionist. Yelp’s leadership has been vocal about pivoting from a traditional listings platform to an AI-first engagement ecosystem.