At the risk of making blanket pronouncements, here are some blanket pronouncements.
When you hear a proposed business model described as being like "[POPULAR APP] for [BLANK]" (Skype for sandwiches" to use Oliver's phrase), you can be reasonably confident that the entrepreneurs:
Don't understand the business model behind the app (in this case, Yelp);
Don't understand blank (in this case; social media).
There's also a very good chance that they are either trying to scam investors or successfully scamming themselves (in this case apparently the latter -- just check out their reaction to the taxi driver clip).
I have to admit that I'm breaking my own rule by not researching this business further before blogging about it. Though I feel a bit guilty about not doing due diligence, it's late, I'm tired and most importantly, while there is the possibility that this is not as bad as it sounds, there is also the possibility that it's worse, and that's just not good for the blood pressure.