While trying to raise funding for Evenlevel one of the most common points of feedback we heard was, “How is this different from eBay Motors?”. From an outside perspective, that is a logical question. After all, Evenlevel was selling low priced cars, as is/was eBay Motors. However, I think eBay’s attempt to go after the local market has opened up room for a new lowest cost competitor.
I’m obviously not privy to the decision making to launch eBay Local Market, but I would guess it came about because of slowing sales in eBay Motors and the recognition that car sales are still largely local. eBay Motor’s therefore launched a transaction-based classified section.
However, consumers looking for great deals may be surprised to find that the cars on eBay are the same price as those on Autotrader. No dealer is going to list Local Market cars at a price different from Autotrader prices, meaning the average eBay Motor’s list price has gone up. eBay is abdicating the low price spot.
If a company like iBidMotors.com or Carliquidators.com can scale to a large level, there is a lucrative market opportunity awaiting either company.