EBay takes on Groupon

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http://www.reuters.com/article/2012/10/10/ebay-groupon-idINDEE8990CP20121010

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 Facebook-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.

EBay has teamed up with start-up Signpost, which arranges the deals with local merchants and posts them on a new section of eBay's online marketplace, here .

Signpost, backed by Google Ventures, already provides deals for Google Offers, a rival to Groupon.

Recent deals included $12 for a one-hour dog-walking service worth $25; $50 for a month of Yoga classes worth $110; and $180 for six private gym sessions worth $360.

The move is potentially a big step for eBay, which has traditionally focused on products rather than services. EBay has run daily deals on physical products for about two years, but this is its first foray into discounted local services in the United States.

EBay plans to add more deal providers if the effort goes well.