Most articles are very similar, saying that eBay is challenging Craig's list and the consensus seems to be that eBay will lose in this challenge. I'm not so sure.
Craig's list might have the mind share right now but as a business, it is a bare bones operation with a cheesy site that appeals to a small segment of the web (60's radicals). Okay, it actually appeals to a wider group then that but it would not be able to withstand even a small push from eBay's marketing machine without taking on investment, which is contrary to the goals of owner Craig Newmark. If eBay chose to, it could flex its muscle and marginalize Craig's List's in short order.
Now, why would eBay do this? They own 25% of Craig's List, wouldn't it be better for their investment if they didn't rock the boat? Unfortunately, they are a Public Company and management doesn't have the luxury of waiting until Craig decides he wants to cash out. So a little old fashioned pressure is in order. By announcing that Kijji will launch in the US eBay has put their foot down and given Craig notice. Either sell us the rest of the company or we will go after you. Of course this isn't the message coming from eBay and true to "eBay Speak" they are saying all the right things.
"EBay spokesman Hani Durzy said the company didn't launch the site with much fanfare and has no plans for mass marketing or advertising. Instead, eBay — one of the biggest online advertisers — will try to drive traffic to the site through keyword searches on Google, Yahoo and other huge sites.
Durzy emphasized that Kijiji in the United States will likely remain free for most users — but eventually the company may charge for display ads or premium services."
Just My 5 Cents!