eBay has launched a new online classifieds service that competes directly against the popular listings site craigslist.org, reports The New York Times.

Kijiji, which takes its name from the Swahili word for "village," has long been active outside the US but launched in the States without much buzz last Friday. It works much like craigslist does, with sections for 200 cities across the country and ability to list items or services in a variety of vertical categories.

eBay, which owns a 25 percent stake in craigslist, said it will use search engine ads and optimization to drive traffic.

It will not, however, use the eBay site itself to transition user traffic.

Unthreatened by Kijiji, a craigslist executive said his company views itself as a public service and does not concern itself with competition.