eBay rules out Amazon-style tablet to compete with Amazon
Published 18/10/2011 | 13:41
eBay’s chief executive John Donahoe has ruled out launching a tablet style computer to compete with its online shopping rival Amazon.
Speaking at the Web 2.0 Summit in San Francisco, Donahoe said that the company, which also owns PayPal and GSI, would not launch a tablet to pit itself directly against its biggest rival Amazon, which just announced the Kindle Fire.
“No we are not going to launch a tablet,” he said.
“Tablets are most relevant if you are digital goods provider. We are not a digital goods provider. We do not provide digital goods the way Apple does or the way Amazon does… the tablet is just one more screen in a consumer’s purchasing behaviour.”
Donahoe also said that eBay, which is trying to position itself as the ‘payments operating system’ of the web along with its sister company Paypal, was more ‘trusted’ by retailers and sellers than Amazon.
“We don’t compete with the people who sell on our platform as we are not also a retailer [unlike Amazon] and we will never be.
“Ultimately this is what these sellers are telling us and it makes a difference – they want someone they can trust – to help them come online and embrace the commerce environment. It’s an important differentiator in their minds.”
eBay and Paypal are now trying to work with bigger retailers, as well as smaller sellers, to help them embrace ecommerce.
Donahoe dismissed the potential threat of Google Wallet, saying that the story of the web was not about one winner.
“There will be a lot of innovation in payment but we feel pretty good about having strong innovation in shopping and payments… Paypal has 100 million active digital wallets today.”
He hinted at a deeper partnership with Facebook moving forward saying there will be lots of exciting experiments with “social shopping”.
Last month Facebook’s platform and mobile marketing executive Katie Mitic joined the eBay board.