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ebay vs. Craigslist...Really???

DaleKingDaleKing subscriber Posts: 141
edited December 2007 in Marketing
In case you haven`t heard, over the summer, eBay opened a U.S. version of its popular classified ad site Kijiji.com.
Kijiji has previously been available in Canada as well as parts of Europe and Asia, and is a direct competitor to Craigslist, which is not nearly as popular in those countries as it is in the U.S.
According to the Wall Street Journal, Kijiji is available in 220 cities in all 50 U.S. states. Like Craigslist, advertising is free with eBay looking at ways of charging sellers for display ads or premium services at a later date.
Here`s something else that`s interesting. eBay bought 25% of Craigslist in 2004 and retains that shareholding today. So here`s my question: Since ebay has a 25% ownership share in Craigslist, are they competitors or partners?
I say they`re partners. Your thoughts?
Dale King

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    lisavetalisaveta subscriber Posts: 8
    I think they`re just an investor, not wanting to overlook that segment of the online market.
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    DaleKingDaleKing subscriber Posts: 141
    Both in real life, but competitors by legal standards.
    Microsoft and Apple are competitors, there is no doubt about that according to the DOJ. However, Microsoft made a substantial investment in Apple in 1997 and still holds that stock. At the time the $150 million investment represented 4.5% of the company, I believe that percentage remains the same. At the close of business today Apple has a valuation of 160 billion, Microsoft`s 4.5% of that represents $7.2 billion clearly a large investor. Yet nobody would say that they are anything other than competitors.

     
     
     
    That`s a great point. Very well said.
     
    Dale King
    DKing12/1/2007 6:22 AM
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    entreplanetentreplanet subscriber Posts: 3
    I say that ebay and CL aren`t partners...I think Ebay is doing what starbucks is doing, and buying parts of competitors, so that they can quitely run a "monopoly" per say. Everyone knows CL will consume EBAY eventually. so instead of competing, ebay buys small stakes in cl and ubid and so forth...sort of a "can`t beat em, join em" sort of thing I suppose
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    mattjensenmattjensen subscriber Posts: 0
    Hey DKing,
    I am new to this site and i have been reading your posts.... you are very resourceful. that kijiji site is very cool.
    Thanks for the insight and keep up the good work.
    Being young and in business for myself for over 4 years, I am finding this site very resourceful. Thanks again...
    -m@!this rocks!
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    DaleKingDaleKing subscriber Posts: 141
    Hey DKing,
    I am new to this site and i have been reading your posts.... you are very resourceful. that kijiji site is very cool. Thanks for the insight and keep up the good work.
     
    Thank you very much, Matt! Welcome to the forum!
     
    Dale King
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