Is Craig's List Killing Innovation?

I was having a conversation over e-mail with a friend about the local startup eegloo. I don't know much about the company, so I won't take any liberties to elaborate; you can read their executive summary [PDF link] yourself.

What I do know is that they, and many, many others, are trying to improve the Internet classifieds market that Craig's List currently dominates. Craig's List holds their market share for a lot of good reasons. It's clean, simple, free and most importantly it has massive scale.

I don't have exact quotes, but Craig's List has made it clear that they aren't looking to innovate any further, improve usability or make significant changes to the site. That's not to say they aren't doing things like combating spam and fraud (to a limited extent), but they aren't looking to change the way their website works.

This poses a huge problem for innovation in online classifieds. How can you compete with the massive scale of Craig's List?

Newspapers are certainty failing at it, but we haven't seen them use innovation to try and upset Craig's List's lead. Newspapers are generally relying, wrongly, on their own reach and ability to go to market. In this example users have a choice: go to Craig's List and see a ton of listings, a ton good and a ton that are crap or go to your local paper and see a limited selection and still a ton of crap. At least there are more choices with the former.

So you have startups like eegloo that think they've found a better way. Maybe they have, but challenging the scale of Craig's List isn't even an uphill climb - it's upmountain.

My theory is that there are much better classifieds solutions out there, but Craig's List is killing them. They've basically frozen the market for the foreseeable future and I, just like everyone else it seems, haven't quite figured out how to break them.

I plan on doing it by skipping the destination site and creating highly scalable software that others can use to power their own idea of an innovative marketplace.

Finding an Apartment in New York City

Finding an apartment in New York is no fun. Your best source of listings is Craig's List, but that's full of spam and, frankly, brokers that flat out lie. I realize why they do it - competition is tough, but isn't there a better way? A 8'x8' room in a 6th floor walk-up is not something that I would call, "Cozy."

Can't we apply the Match.com method to apartment hunting? Broker fills out a profile for each apartment, I fill out a profile outlining what my requirements and nice-to-haves are and I get back some kind of compatibility match. Brokers can be rated on their honestly, their ability to actually show up at a viewing and on how easy it is to work with them.

Are you an old lady, reading this blog, sitting in a fantastic, rent-controlled apartment in the East Village ready to keel over and give me your apartment? You are?! Well here's what I'm looking for:

Requirements:

• If in Brooklyn, must be close to the L train. No, not the J, M, Z - it's not the same.
• Must allow dogs (don't worry, it'll be a small, hipster-type French Bulldog)
• Must be in the $1,300 per month range - hey, I don't want to spend all my money on rent

Nice-to-haves:

• If in Manhattan, near the 4, 5 or 6 trains
• I'd much prefer a converted factory loft over a traditional apartment
• Outdoor space would be great. Balcony, small yard, whatever.
• Big windows are a plus
• Elevators are nice, but I can take the stairs if I have to

That's it! Shouldn't be so difficult. I've seen a few places I like, but I'm taking the time to find something perfect - I'm not stuck in a lease, so I can go anytime.