EBay Drops $80M On Hunch
Out to read consumers’ minds, eBay just acquired recommendation engine Hunch for a reported $80 million.
Per the deal -- first reported by Michael Arrington on his Uncrunched blog -- Hunch’s recommendation technology is expected to be used by eBay to revamp its own ecommerce recommendations. One of Hunch’s co-founders, Chris Dixon has even been pegged tp take over eBay’s existing 50-person recommendations team, and start a new office in New York.
“That New York office will eventually grow to some 200 employees, I’m told, who’ll focus on recommendations,” Arrington reports. “But the team will also analyze lots of eBay data, and perhaps productize some of it or otherwise release it.”
“Although Hunch and eBay don't look like a perfect match at first glance, it appears that the online auction site has no desire to use Hunch in its current form,” writes CNet. “Instead, eBay said today, it will use Hunch's technology to improve its own recommendations across its site.”
“I think the purchase could improve eBay in a number of ways,” according to GigaOm’s Ryan Kim. “For one thing, it could help the retailer better compete with Amazon, and it keeps Hunch out of the hands of its rival, which has been well regarded for its ability to recommend products to users based on their purchase history and preferences.”
EBay launched its own recommendations last year to help suggest items based on past searches, but, as Kim notes, “It clearly has a long way to go in matching Amazon, which moved ahead of eBay in sales last year.”
Founded in 2008, the New York-based Hunch has already raised nearly $20 million in funding. Notes Arrington: “In mid-2010, there were whispers that Google was taking a long look at the company as well, although I haven’t heard anything to suggest they were bidding against eBay this time around.”
As Reuters reminds us, “This is the latest in a string of acquisitions by eBay as it tries to revive its online marketplace, which has lost market share in recent years to Amazon.com.”
Recent Around the Net In Online Marketing Articles
-
Cheaper Nook's Getting Web Browsers, Email May 20, 11:25 a.m.
Nook Simple Touch, Barnes & Noble’s inexpensive line of e-readers, is getting a Web browser and ...
-
Foursquare Gets $41M In Private Equity April 11, 11:34 a.m.
Giving itself more time to grow and mature as a business, Foursquare just took $41 million ...
-
Google Unveils Google Keep App March 21, 11:29 a.m.
Confirming earlier reports, Google on Thursday unveiled a new note-taking app named Google Keep. But, despite ...
-
Nexflix Friends Facebook March 13, 2:29 p.m.
In what Web watchers are calling a long-overdue integration, Netflix has finally tapped Facebook to offer ...
-
Mason Out At Groupon March 1, 10:45 a.m.
Andrew Mason is out at Groupon. Yes, after another disappointing quarter -- which sent the deal ...
-
Groupon Loses Market Value Feb. 28, 11:34 a.m.
In the surest sign yet that the once-booming daily-deal space has busted, Groupon lost a quarter ...
-
Foursquare To Take Credit, Debit Cards Feb. 26, 11:23 a.m.
In conjunction with its check-in deals program, Foursquare will now accept Visa, Mastercard and debit cards. ...
-
Pinterest Valued At $2.5B Feb. 21, 12:47 p.m.
Social scrapbooking sensation Pinterest has secured $200 million at a valuation of $2.5 billion. “There have ...
-
HP To Adopt Google's Android System Feb. 14, 11:59 a.m.
Reshaping the mobile landscape, Hewlett-Packard reportedly plans to adopt Google’s Android operating system to run a ...
-
Amazon Creating App Currency Feb. 5, 11:11 a.m.
Amazon on Tuesday unveiled a virtual currency for Kindle Fire owners to purchase apps and games, ...
Be the first to comment on "EBay Drops $80M On Hunch"
Leave a Comment