Later On

A blog written for those whose interests more or less match mine.

The dark side of Craigslist: Innovation killer

with 2 comments

And Craigslist not only kills innovation, it does so seemingly just out of perversity. Read Nick Bilton’s report in the NY Times:

In 1995, a good-hearted programmer named Craig Newmark thought of a way to make newspaper classified ad listings simple, and in turn, people’s lives easier. His free Web site, called Craigslist, quickly gained millions of users. Eye-popping offers to buy the company outright came in, all of which Mr. Newmark turned down, saying Craigslist was a “public good.”

Craigslist makes hundreds of millions of dollars a year, but it has become stagnant. Today, it feels stuck in the 1990s, where links are electric blue and everything is underlined. As a result, the site is now crammed with listings and is extremely difficult to use.

One might think Craigslist is as ready for disruption as sleepy newspaper classified ad sections once were. Why hasn’t a site this vulnerable been displaced?

There may be part of the answer in this tale. Eric DeMenthon, a 27-year-old programmer, was one of the users overwhelmed by the site. In 2008 he was searching for an apartment on Craigslist and he couldn’t navigate the endless listings. So he quickly built an application that placed Craigslist apartment ads on an online map. After finding an apartment with the tool he had cobbled together, he realized the product had saved him so much time that he should make it available to others, also as a “public good.”

He said, “I did the math and I figure if I save people three hours of their time on my site when they need to look for a new apartment, that’s over 350 years of time that I can save people each month.”

Last week, Craigslist served Mr. DeMenthon with a lawsuit accusing his site, Padmapper, of infringing on copyright and trademark, and it threw in a long list of other piracy-related claims for good measure.

But, according to Mr. DeMenthon, he isn’t stealing anything. . .

Continue reading. From later in the article:

. . . Craigslist and its chief executive, Jim Buckmaster, did not return repeated requests for comment.

Yet something doesn’t add up in all this. In July 2010, on the question-and-answer site Quora, Mr. Newmark defended the company’s actions in a similar situation to Padmapper, saying he did not take issue with sites that do not affect Craigslist’s servers. “Actually, we take issue with only services which consume a lot of bandwidth, it’s that simple,” Mr. Newmark wrote.

But Padmapper does not siphon off a bit of bandwidth from Craigslist. Instead, it uses a company called 3Taps, which collects listings from Craigslist by looking for them on search engines, including Google and Bing, then organizing them and wrapping them up in an application programing interface, or API, so developers can build sites that point to Craigslist’s listings.

“The listings are already out there, we’re finding them already on the Web and organizing them so other people don’t have to do the same thing twice,” said Greg Kidd, the chief executive of 3Taps. “And, we’re not breaking any laws because we are pulling in the facts from the listing; everyone knows you can’t copyright facts.” Craigslist also named 3Taps in the lawsuit filed last week.

As intellectual property lawyers will tell you, Mr. Kidd is not off base: facts, like those in classified listings, cannot be copyrighted.

So why hasn’t anyone managed to unseat Craigslist, a site that has barely changed in close to two decades? . . .

Written by LeisureGuy

29 July 2012 at 4:37 pm

2 Responses

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  1. Great Question and definitely an incredible opportunity… I’m surprised Google hasn’t done it yet.

    Joe at ItalianBarber

    29 July 2012 at 5:03 pm

  2. If Craigslist is making hundreds of millions of dollars a year, and has lots of IP tied up with top-notch Silicon Valley IP lawyers on the job, I imagine it would be expensive to attack. But I don’t get why they are so determined to keep a closed system and not allow third parties to add-on cool services: that would seem to make their business even more valuable. I don’t get it.


    29 July 2012 at 5:27 pm

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