By Sachin Mohan · AIM Media House
Yelp Inc. has officially completed its acquisition of Hatch, a leading AI-powered lead management and customer communication platform, for $270 million in cash plus $30 million in employee retention incentives.
The deal, announced January 21, 2026, and completed by February 6, positions Yelp to deliver advanced AI tools to local service businesses, helping its 76 million monthly visitors with Hatch's proven conversion technology. The acquisition is a big step in Yelp's AI transformation.
Hatch's platform automates customer communications across voice, SMS, email, and quote requests, addressing critical pain points for home service providers.
Prior to the deal, Yelp and Hatch integrated in November 2025, enabling AI agents to instantly respond to Yelp's 85,000 daily project inquiries, which drove faster lead conversion and appointment bookings. "Hatch solves challenging lead management and communication pain points for services businesses.
By combining our scale with their innovative AI, we can help providers operate and grow more efficiently," said Yelp CE Jeremy Stoppelman .
Hatch, founded in 2018 and headquartered in New York, had reached $25 million in annual recurring revenue (ARR) by November 2025, growing 70% year-over-year despite modestly negative cash flow. The platform's end-to-end capabilities complement Yelp's consumer reach perfectly.
Hatch has now become a Yelp subsidiary, funded partly through Yelp's amended revolving credit facility with JPMorgan Chase and Wells Fargo. The merger agreement, signed January 17, converted all Hatch equity and options into cash rights, subject to post-closing adjustments. Why Does It Matter?
Hatch’s platform is designed to help home service businesses increase conversion rates and retention while lowering overhead costs.
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