On the heels of the new site redesign it launched earlier this week, Reuters reports eBay has also been quietly testing out a new service called eBay Lifestyle Deals that puts it squarely in competition with Groupon.
The service, which is doing limited runs in metro areas including the Bay Area, Los Angeles, and Washington, D.C., is another example of a large company targeting the local deals market. In that sense, eBay is also making a direct play at Google Offers and AmazonLocal than at Groupon itself. Both Google and Amazon rely on deal brokers who negotiate with merchants to create offers, whereas Groupon employs its own fleet of salespeople.
Like Amazon, eBay has built its business on a reputation for being a marketplace of goods, so its foray into offering services as well seems fairly organic, if not inevitable. It is also testing new ways to get merchants’ products to customers. Notably, a new mobile app called eBay Now lets customers order items from local stores and have them delivered on-demand.