This inquiry pertains to corporate decision-making, the rationale behind those decisions, and their effects on the business. The interviewer seeks to understand why Yelp, a platform that features user-generated reviews of businesses, opted to sell its food ordering service, Eat24. To respond effectively, you should investigate the sale and the context surrounding it. The reasons for such a decision could vary widely, including a shift in business strategy, the pursuit of financial stability, or the goal of gaining a competitive edge.

Yelp's choice to sell Eat24 to Grubhub stemmed from the understanding that collaborating with a well-established food delivery service was more advantageous than dealing with the complexities of a different industry. The food delivery market was expanding quickly and becoming increasingly competitive. By divesting Eat24, Yelp could redirect its attention to its main local advertising business while also benefiting from Grubhub's strong delivery network. Additionally, the acquisition of Eat24 by Grubhub resulted in an integration agreement that allowed Yelp users to order food from approximately 75,000 restaurants nationwide through Grubhub.

Yelp chose to sell Eat24 to Grubhub mainly for strategic purposes. Yelp’s core competency lies in generating business through reviews and recommendations rather than in delivery logistics. Following the sale, Yelp reported robust financial performance, indicating that the transaction and the ensuing partnership with Grubhub enabled Yelp to concentrate on and invest more in its primary business activities. Consequently, the sale provided Yelp with a chance to refine its business model, allowing it to focus on its strengths—linking people with excellent local businesses.