ZipLocal: Another Search Engine in Red Ink
October 29, 2008
ZipLocal, according to the Canadian Press here, continues to lose money. ZipLocal is a local search engine. The company was founded in 2006 and focuses on Canadian cities. The content is available in English and French. The company was formed as a result of the merger of redCity Search Company and Zip411.net. The company says:
ZipLocal provides relevant search results from over 1.3million businesses with maps and capability for users to review, rate and tag business listings. ZipLocal is focused on creating the most comprehensive and engaging search experience at the neighborhood and city-wide level… ZipLocal is the only “made in Canada” local search site to successfully bridge a traditional business directory with the consumer-generated input required to be the next go-to search destination.
For me, the most interesting comment in the Canadian Press article was:
The full-year loss was $6.3-million, nine cents a share, compared with a prior-year loss of $6.3-million, 14 cents per share. Revenue was $4-million, down from $5.7-million.
Consistent losses and declining revenues are disappointments for investors. Beyond Search will root for ZipLocal. Let’s hope the company gets back on track, avoiding the fate of Entopia, Delphes, and the other companies I’ve suggested are struggling to survive in the search, content processing, and text mining market. Competing with Google Local is tough. Google’s free service allows a business to post information about the business and a coupon for free. Ah, the GOOG, and it’s not a directory publisher, right?
Stephen Arnold, October 30, 2008
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