On the 19th of July, Yelp reached out to a number of independent developers, notifying them of the need to switch to premium accounts due to their extensive use of the API. The developers were given a mere four-day window to comply, a decision reminiscent of recent communication missteps seen with Reddit and Twitter.
In response to the July 19 communication, Yelp presented the developers with a pricing structure that begins at $229 monthly for up to 1,000 API requests each day.
Yet, Yelp failed to mention alternative plans which were available, including $8 to $15 options for additional sets of 1,000 calls.
This approach to communication and the apparent lack of openness has left many developers feeling frustrated, leading to some discontinuing their services even after Yelp offered an extended 90-day period to adjust and issued an apology.
What happened?
As observed by TechCrunch, the initial email stated: “We value your participation and experimentation with the Yelp Fusion API. Your utilization of the API surpasses that of many other developers engaged with Yelp Fusion, and we’re interested to understand how you are incorporating the Fusion API into your service.
“Should we not hear from you by 4:00 pm EST on 7/23/2024, we will temporarily revoke your API key until we have the requested information.”
David Kopec, creator of the Restaurants app for macOS, aimed at discovering local eateries, shared via his blog that Yelp had originally permitted up to 25,000 free daily API requests in 2014.
Other startups have publicly aired their grievances regarding Yelp’s recent decisions.
Food Genie’s developer, Nick Perkins, expressed his astonishment to TechCrunch at Yelp’s sudden announcement, noting the company’s silence on his queries. Perkins highlighted that his app, launched in 2017 for 99 cents, only made a few hundred API requests daily.
Roj Niyogi, the co-founder of Enfits, a nascent venture leveraging location-based incentives, criticized Yelp’s abrupt notice and their virtual ultimatums as a distressing pressure tactic.
Yelp responds
Yelp elucidated to TechCrunch their shift towards a paid model initiated in 2019, mentioning ongoing efforts to transition developers towards paid subscriptions. The platform stressed the developer community’s importance and acknowledged their critique over the phase-out of the free Yelp Fusion API to a monetized scheme.
“Yelp regrets the inconvenience caused by the recent communication and has decided to grant impacted developers a 90-day grace period,” remarked a Yelp spokesperson.
Come Thursday, Yelp addressed developers directly, offering an apology and an additional three months of complimentary API access as a gesture of goodwill, following their initial announcement. “We acknowledge the need for more time to adjust and are thus extending your free access for an extra 90 days starting today. Access has been reinstated,” according to Yelp’s correspondence as reported by TechCrunch.
Despite Yelp’s conciliatory efforts, Perkins had already decided to withdraw Food Genie from the App Store, citing the mishandled transition. He mentioned considering alternative APIs for any future endeavors.
Similarly, Kopec opted to discontinue his project, attributing his decision to Yelp’s unresponsiveness concerning pricing discrepancies. The narrative shared among developers wasn’t primarily against the paid API model; it was the way Yelp’s executed the communication, delivering a mere four days’ notice with a misleading urgency.
As AI innovations proliferate, companies that hold extensive user-generated data are increasingly guarding this asset from third-party use. Over the past year, platforms like Twitter/X and Reddit have tightened API access for third-party developers, leading many to divert their efforts to new, more open platforms, signifying a potential shift in how user data ecosystems may evolve.
Yelp may find instructive lessons in the fallout from these platform changes.
Compiled by Techarena.au.
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