When people think of buying and selling things online locally, most think automatically of Craigslist, the classified

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When people think of buying and selling things online locally, most think automatically of Craigslist, the classified ad marketplace that has dominated that business for the past two decades. But as the rest of the world has gone mobile, Craigslist has not. In fact, the familiar but cluttered collection of blue hyperlinks has changed very little over the years. Some critics suggest that Craigslist has taken its monopoly for granted.

One industry observer refers to Craigslist as “the cockroach of the internet age—an ugly but effective e-commerce platform that . . . emerged unscathed from technology shifts that crippled mightier contemporaries like Netscape and Yahoo.”

In the new landscape of digital disruption, one thing seems certain: What dominates today could be under threat tomorrow.

That tomorrow may already be here for Craigslist as numerous, more user-friendly competitors have emerged to challenge the classified ad champ. Enter OfferUp—a relatively new mobile app for buying and selling items that is taking the digital marketplace by storm. OfferUp is not only challenging Craigslist as the go-to platform by which individuals and businesses sell goods and services in local markets, it’s also starting to challenge the likes of eBay and even Amazon by flexing its muscles beyond local market boundaries. Unexpectedly, OfferUp now rivals the most popular social media apps in terms of time spent by users.

About a decade ago, as the mobile device revolution began to explode, Seattle resident Nick Huzar was frustrated as he tried to unload unwanted household items in preparation for his soon-to-be-born daughter’s nursery. He didn’t have time to post all these items on Craigslist, which required multiple steps that pretty much required a desktop or laptop to complete.

Instead, he went to Goodwill, where he always found a line to drop donations. With a smartphone in his hand, he recognized the potential for an online marketplace that made posting, monitoring, and browsing items for sale in a local market as simple as social media interactions. That led to a partnership with friend Arean van Veelen and the ultimate launch of OfferUp in 2011.........................

Questions 1. As a mobile marketplace, how does OfferUp provide value to shoppers? Sellers?
2. Analyze OfferUp’s business model relative to the different forms of digital and online marketing covered in this chapter.
3. Describe the value of OfferUp to national brands and retailers as a channel for mobile marketing. Does OfferUp also pose a threat these companies?
4. Compare the competitive relationship between OfferUp and LetGo to that of Uber and Lyft. Based on this comparison, what does the future hold for OfferUp?
5. Do you agree with Nick Huzar that OfferUp can succeed without taking business away from Craigslist? Explain.

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Marketing An Introduction

ISBN: 9781292294865

14th Global Edition

Authors: Gary Armstrong, Philip Kotler, Marc Oliver Opresnik

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