Yelp recently informed select indie developers on July 19 that they would need to switch to paid accounts due to high API usage, giving them just four days to make the transition. This move reflects similar communication missteps made by Reddit and Twitter in the past.
In response to the email sent on July 19, developers were presented with pricing tiers starting at $229 per month for a limit of 1,000 API calls per day. However, Yelp did not highlight other options, such as $8 to $15 a la carte packages for 1,000 calls each.
The lack of transparency and abrupt communication from Yelp has left developers frustrated, leading some to shut down their services despite a 90-day grace period and an apology from Yelp.
What happened?
The email shared with TechCrunch mentioned that Yelp appreciated the developers’ use of the Yelp Fusion API but emphasized high usage compared to other developers. Yelp requested more information on how the Fusion API was being integrated into their platforms and threatened to temporarily deactivate API keys if no response was received by 4:00 pm EST on 7/23/2024.
David Kopec, developer of the Restaurants Mac app, revealed on his blog that Yelp had initially offered him up to 25,000 daily API calls for free back in 2014.
Several other startups have also publicly expressed concerns about Yelp’s handling of the situation.
Nick Perkins, developer of Food Genie, expressed surprise at Yelp’s announcement, stating that his app, priced at 99 cents and launched in 2017, only utilized a few hundred API calls per day.
Roj Niyogi, co-founder of Enfits, criticized Yelp for the short notice and perceived threats, describing the situation as a “virtual gun to the head” for developers relying on Yelp’s API for place data.
Yelp responds
Yelp explained to TechCrunch that they transitioned to a paid pricing model in 2019 and have been gradually moving developers to paid plans since then. Despite this transition, many developers are still using the free version of the API.
In a statement, a Yelp spokesperson acknowledged the feedback from developers regarding the transition and apologized for the abrupt communication in July, extending free access to affected users for an additional 90 days.
The apology email sent to developers detailed the extension and expressed regret for any inconvenience caused by the sudden transition.
Some developers, like Perkins and Kopec, decided to discontinue their projects due to dissatisfaction with Yelp’s handling of the API transition.
As more companies restrict third-party access to user-generated data, platforms like Twitter and Reddit have faced backlash for similar API changes. The lack of transparency and support for developers has led some to explore other platforms for app development.
Yelp’s recent communication missteps serve as a cautionary tale for the importance of clear communication and support for developers during transitions like these.
