Auction firm
eBay has
launched a US version of its
Kijiji
online classified service, allowing users to post free classified ads for things
such as job openings, sale items and services.
Postings are organised by category and locality, listing 213 cities under
subcategories.
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EBay launched Kijiji in 2005 after acquiring
Gumtree's
European classifieds network spanning Europe, Asia and Canada. The auction firm
also owns the
Slando
service in eastern Europe.
Kijiji's biggest competitor in the US will be
Craigslist,
in which eBay has a 25 per cent stake.
The 12 year-old San Francisco-based Craigslist enjoyed a
cult following and
became become one of the most popular sites on the internet with everything from
job postings to
angry
letters.
A study conducted last year by research firm
comScore
found that Craigslist dominates the web classified industry. The site is
currently the 47th most popular on the internet, according to the
Alexa
Top 500 rankings.
EBay purchased a 25 per cent stake in Craigslist in 2004 and believes that
the two sites can coexist. But analyst Greg Sterling of
Sterling
Market Intelligence said that a battle between Kijiji and Craigslist could
end up costing the e-commerce giant.
"This is an uphill battle but it also raises ethical questions regarding how
eBay has been operating vis-à-vis Craigslist," Sterling wrote in a
company
blog.
"Since its acquisition of a 25 per cent stake in the company several years
ago, eBay has had a board seat and has essentially been looking at the way
Craigslist operates from the inside."
Sterling remains sceptical that Kijiji will be able to overtake Craigslist in
the classified market.
"Google
Base did not kill Craigslist or eBay, and Kijiji will not kill Craigslist,"
he declared.
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