Is Pigeon the next Google Algorithm update?

Over the last few days Google rolled out a new algorithm update. The algorithm has not yet been named by Google but the industry is dubbing it "Pigeon".

The focus of this update is on local search. Local search is obviously not new. Google first rolled out local search in October of 2005. This update is an attempt at refining the experience that users get when performing local queries. The result is that local directories have received a big boost.

As part of the update Google has also solved what the industry called the "Yelp problem". Earlier this month Yelp accused Google of favoring Google Places listings above Yelp even when users were specifically searching for Yelp. You can read more about it that here or here.

It looks like the "Yelp problem" has been resolved, while also giving a boost to other local directories.  Fewer of the Google reviews are ranking vs those directories.  What does this mean for Google reviews and Google Plus?  Would this mean they are admitting defeat vs the other review sites that have a more loyal following?  While I am not an active Google + user, I hope this is not the case.  I do love having my maps being linked to places I've been and reviewed.  The ability to make maps and dynamically add to them on my own has been a great feature on my Android phone.  While I think it's clearly fair that if you are searching for Yelp with a business that you should see that first, I do not want this to mean that all of Google reviews will fall to the background.