EBay Inc. has been quietly testing an online marketplace for deals on local services, expanding into a multibillion-dollar market currently led by Groupon Inc.
EBay is also re-designing its website, adding Face-book-like features it hopes will spur more sales.
Called eBay Lifestyle Deals, the offers are being run in a limited number of urban areas, including the San Francisco Bay area, Los Angeles and Washington D.C., according to the company.
"This is more competition for Groupon, but also more validation for Groupon's business," said Arvind Bhatia, an analyst at Sterne, Agree & Leach. "The market opportunity is big - that's why you have Google, Amazon and now eBay committing themselves."
