Yelp, which made a name for itself giving restaurant recs, just bought an auto services website.

In the company’s earnings report on Thursday, Yelp revealed that it agreed to buy RepairPal, a site for car repair estimates, for $80 million in cash. The acquisition is expected to close by the end of the year, subject to customary closing conditions.

“We believe RepairPal will accelerate our broader services efforts by expanding our offerings in the multi-billion dollar U.S. auto services advertising vertical,” Jeremy Stoppelman, Yelp’s co-founder and CEO, said in a statement.

While it might not seem like an obvious marriage, RepairPal fits into Yelp’s ambition to become a major home services funnel.

In recent years, Yelp has added functionality beyond restaurant and business search tools, like an AI-powered feature that suggests plumbers, repairmen, and other home service providers to users potentially in need of them. Yelp has also introduced programs like Yelp Guaranteed, which offers up to $2,500 of coverage for qualifying projects in case of problems.

Yelp makes money through fees it receives from service providers for certain leads — and through ads. In the company’s most recent fiscal quarter (Q3 2024), advertising revenue from services businesses increased 11% year-over-year to a record $228 million, with revenue growth of around 15% in the home services category alone.

In its shareholder letter, Yelp says that RepairPal generated approximately $30 million in revenue and was roughly break-even on cash and net income. 

“We believe there are clear synergies between Yelp and RepairPal,” the letter reads. “RepairPal brings deep knowledge of auto repairs and pricing, which we can leverage to improve our offerings for auto services businesses. They also maintain a robust partner network, including CarMax, USAA, and Endurance Vehicle Services. Meanwhile, Yelp has a large consumer audience and expertise in areas like search engine optimization, search engine marketing, and AI, which we believe will provide value to RepairPal going forward.”

The acquisition is a nice exit for San Francisco-based RepairPal, which managed to raise $21.3 million in funding from Cars.com, Tugboat Ventures, and others in the 17 years since the company’s founding. In its press release, Yelp didn’t say whether founders Aaron Tavistock, David Esser, and David Sturtz will be joining Yelp corporate.

A Yelp spokesperson later confirmed to TechCrunch that all RepairPal employees, including the leadership (but not the founders, who no longer head the company), will be joining Yelp.