eBay Takes on Craigslist

Online auction giant launches US version of classifieds website

By Caroline Zimmerman, Newser Staff

Posted Jul 4, 2007 4:12 PM CDT

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eBay Takes on Craigslist — In this handout screen shot provided by Adobe, eBay's "San Dimas" Apollo pilot desktop application is shown. Sellers using eBay's "San Dimas" Apollo pilot desktop application can take photos of their items with a Webcam (if connected) or simply upload from the hard drive. They can also see all past... (Associated Press)

With no fanfare, eBay has launched a challenge to Craigslist, the colossus of the online classified ad market. Kijiji classifieds, which have already been successful abroad, quietly expanded into the US last week. Kijiji knows what it's up against: eBay bought 25% of Craigslist in 2004 to get an inside perspective on the industry, and isn't planning on selling.

Kijiji (Swahili for "village") launches domestically as investors are fretting over eBay's slowing growth rate. The classifieds network will be free at first, but the parent company plans to add premium services. Craiglist, which has provided free services since its inception in 1995, doesn't sound too concerned. "We simply do not look at other sites as competition," said a spokeswoman. (More eBay stories.)

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