Statement from eBay Regarding Taobao's Pricing Challenge
From eBay (Press Release):
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 19, 2005--eBay (Nasdaq:EBAY) today issued the following statement regarding Taobao's pricing challenge:
"Free" is not a business model. It speaks volumes about the strength of eBay's business in China that Taobao today announced that it is unable to charge for its products for the next three years.
We're very proud that eBay is creating a sustainable business in China, while providing Chinese consumers and entrepreneurs with the safest, most professional, and most exciting global trading environment available today.
Chinese Auction War: Taobao.com to be Free of Charge for Three More Years