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Article

Title: eBay Starts U.S. Version of Its Classifieds Site

Author: Guynn, Jessica Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Jul 4, 2007
URL of Publication: http://www.sfgate.com

A battle between the two leading classified-advertising websites, eBay Inc. and Craigslist, is looming. In a move targeting the very popular Craigslist, the largest free bulletin board in the world, eBay, the largest online auction company in the world, has introduced a version of its successful overseas online classified network to the United States market. Kijiji is now available in 220 cities in 50 states. In 2004, eBay bought a 25-percent stake in Craigslist in order to study how to aid its users in finding jobs, apartments, furniture, and more, so eBay understands the classified business from the inside. In 2005, eBay introduced Kijiji, which is an international network of approximately 50 classified advertising websites. At the time, the company said it had to plans to move into Craigslist's market in the United States. Since then, however, eBay has expanded its classified ad business into the Netherlands, Spain, England, Australia, and other locations. The release of Kijiji in the United States comes at a time when investors are becoming worried about the slowed growth rates in eBay's larger markets. According to Hani Durzy, spokesperson for eBay, the investment in Craigslist was both financially and strategically successful. The company now feels that it can provide another classified-ad option to local users in the United States. This is the largest e-commerce and advertising market in the world and already supports a number of online marketplace platforms, Durzy says.

Companies:
craigslist Inc eBay Inc

Products:
Kijiji

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