EBay expands classified ads push

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.

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 percent 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 percent 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.