The move comes as sites such as Groupon have gotten extremely popular by combining social media with the power of group buying, offering shoppers daily deals on products and services in their communities.
With Groupon, however, the deals are only made active once a certain number of people in a city have agreed to participate.
In Yelp's case, there is no minimum participant requirement.
Right now, Yelp is just testing the service in San Diego and it isn't offering one deal each day. It has offered two deals so far: one at a spa and another at a Yoga studio.
The Yoga studio deal was offered to users on Thursday, giving them five yoga classes for $30 $35 off the normal price at The Little Yoga Studio.
Revenue from the coupons is divided between Yelp and the participating business, though Yelp isn't saying what percentage each party gets.
Yelp plans to test the feature out in San Francisco and New York in the coming weeks, and, depending on how that goes, more cities may be added.
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