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How Yelp Accelerates Gentrification Modern Day Gentrification: How Yelp Accelerates Gentrification A Research Paper in STS 4600 Presented to The Faculty of the School of Engineering and Applied Science University of Virginia In Partial Fulfillment of the Requirements for the Degree Bachelor of Science in Systems and Information Engineering By Tiffany Nguyen April 10, 2020 On my honor as a University student, I have neither given nor received unauthorized aid on this assignment as defined by the Honor Guidelines for Thesis-Related Assignments Approved by Prof. Kent Wayland, Department of Engineering & Society Introduction: Dramatic change has been occurring in urban neighborhoods throughout America. Gentrification, the process of renovating and improving an urban district to conform to middle class standards, has been on the rise with around twenty percent of lower income urban neighborhoods experiencing gentrification since 2000 (Maciag, n.d.). Heated debates have revolved around the disruptive nature of gentrification: that it leads to displacement and contributes to segregation while allowing for a richer middle class to move in (Larsen & Hansen, 2008). On the other hand, policy makers assume that it would result in more socially mixed sustainable, and less segregated communities (Lees, 2008). Recent research has shown that smartphones, particularly location-based apps such as Yelp, are speeding up gentrification in urban neighborhoods across the United States (Charles, 2018). Yelp is a popular business directory app with 36 million users that allows consumers to discover, connect, and review local businesses (Yelp—Company—Fast Facts, 2019). As the number of users continue to increase, Yelp has become an influential platform that acts as the mediator between consumers and providers. Therefore, my paper will study the effects and mutual shaping of Yelp on gentrification in urban neighborhoods in order to understand how different social groups and communities are affected. Background/Context of the problem: Gentrification is typically seen as a movement that converts working-class areas of a city to middle class social norms. In the United States, gentrification is equated to poverty deconcentration with a focus on removing high-density housing projects in low socio-economic neighborhoods and replacing them with socially mixed income communities. Three common 1 policy debates for social mixing that policymakers have are that middle-class people have a greater concern for public resources, mixed neighborhoods have a stronger local economy than areas of poverty, and social mixing will promote social unity and diversity (Lees, 2008). However, gentrification oftentimes unintentionally disrupts and leaves a negative impact on local neighborhoods. For example, the HOPEVI initiative in Washington, D.C. has been criticized for not facilitating and aiding the local displaced community after gentrification through the tear down of 63,000 units and redevelopment of 20,300 units (Atkinson, 2005). Instead, affordable housing units were reduced and the poor local community was excluded from the newly revitalized neighborhood, allowing wealthier people to move in. This resulted in the displacement of numerous low-income families leaving them in a state worse than they were in before. There are several forms of gentrification, the major one is the transformation of industrial sites into new build developments. The second form is urban redevelopment, the process of creating more affluent and middle-class housing in low-income neighborhoods. In this case, gentrification is used as a policy tool to create social mixing in order to promote inclusivity of varying incomes, cultures, and lifestyles. Although gentrification is primarily housing-oriented, research has started to focus on other aspects that impact neighborhood transformations. Commercial gentrification represents the lifestyle and values of residents (Doucet, 2014). As residential demographics change, so might the business landscape because it is based on local demand. Gentrifying neighborhoods might also attract more upscale businesses, shifting the composition of businesses from downscale to upscale (Glaeser et al., n.d.). Therefore, this paper will focus on commercial gentrification from Yelp, and how local business activity can impact gentrification. Yelp is a popular online directory and app founded in 2 2004 that allows users to discover different types of local businesses. The framework for Yelp was built on a database of 20 million business locations where people could submit unsolicited reviews. Yelp stood out from other directory sites because it encouraged people to share reviews among their social network (Bowman, 2017). These reviews present consumers with information about experience goods that is only available after consumption. Information about a variety of experience products is easily obtained from other consumers (Luca, 2011). Literature Review: Current research has shown that online reviews have a systematic problem with a bimodal distribution of extreme and biased views that are over-represented. The majority of Yelp consumers leave either extremely positive or negative reviews but few moderate opinions; many people do not find it worth the time and effort to leave a review if they are not strongly opinionated. The success of local businesses can be greatly impacted as these biased reviews do not accurately reflect the majority opinion on an establishment (Klein et al., 2018). This could impact local neighborhoods and the economy as these biased reviews have the power to increase or decrease consumer traffic, ultimately contributing to commercial gentrification. However, there is currently no research that considers the relationship between biased reviews and gentrifying neighborhoods. Therefore, my research seeks to address the gap in knowledge of whether there is a connection between biased Yelp reviews and gentrifying neighborhoods by analyzing the different factors of biased reviews and evaluating if there is a relationship with gentrification. 3 Data Collection Approach: My STS research question is, “How is Yelp speeding up gentrification in urban neighborhoods?” In order to address this question, my approach is to analyze content from scholarly articles, news articles, and Yelp to understand the social and economic impact that Yelp has on gentrification. I select pieces of literature and articles that discuss how Yelp and online restaurant reviews are impacting gentrification and the economy of local neighborhoods. Furthermore, to address the gap in knowledge of whether there is a connection between biased Yelp reviews and gentrification, I select scholarly and news articles that addresses who, where, and why people leave biased reviews in order to see if bias reviews have an effect on gentrification. If there is a connection between biased reviews on Yelp and gentrification, then I look at current Yelp policies to illustrate the steps that Yelp is taking to protect businesses and users to reduce gentrification. Ultimately, I will analyze these readings to understand how different social groups and communities are affected by gentrification from Yelp. Results and Discussion: Yelp Reviews on Gentrification: Who, Where, and Why? In order to understand the relationship between Yelp reviews and gentrification, it is important to identify the demographics of reviewers, the areas that are vulnerable to gentrifying from Yelp reviews, and why Yelp has the power to gentrify neighborhoods. The average Yelp users are predominantly middle to upper middle-class college graduates; 51% of Yelp users make $100,000 or more and 64% received some college education (Yelp—Company—Fast Facts, n.d.). Oftentimes, reviewers and the people attracted by reviews, are not from these neighborhoods; they seek these areas because they are looking for authentic businesses. This is a 4 problem when reviewers judge the “authenticity” of local restaurants by expecting ethnic food to taste a certain way. Unfortunately, these reviews reflect a culture that supports white supremacy and existing racism. When reviewers are seeking authenticity, they are mentally referencing previous experiences or the media, which reflects existing racism and biases. In fact, restaurant owners have changed their menus to cater to positive or negative reviews and suggestions from Yelp users. (Kay, 2019). As a result, reviewers could impact the local producer and consumer relationship by influencing what type of food or services a business offers. Furthermore, reviewers tend to focus on the internal aspects of a business but when they do mention the external factors, they tend to judge the safety and ambiance of local neighborhoods. Research on the gentrification of Greenpoint and Bed-Stuy, two gentrifying neighborhoods in Brooklyn New York, has shown the racial biases of Yelp reviewers. Although both are deemed as “up and coming” neighborhoods, Greenpoint, a historically white and Polish neighborhood, was described by many as a mix of old and new cultures that have managed to preserve the Polish culture. Meanwhile Bed-Stuy, a historically African-American and Hispanic neighborhood previously deemed “sketchy” and “ghetto,” is described as a neighborhood that is transitioning from bad to good (Zukin et al., 2017). This contributes to an overarching problem of racial biases that are reflected in Yelp reviews (Bayly, 2015). Therefore, gentrification can occur in any low-income neighborhood typically with businesses that are rising in popularity
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