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Why eBay is buying recommendation engine Hunch


 
  
will use Hunch taste graph technology to provide its users with non-obvious recommendations for items based on their unique tastes.


GigaOM, By Ryan Kim Nov. 21, 2011

Hunch eBay has announced it is buying New York startup Hunch, a recommendation engine created by Chris Dixon and Caterina Fake, to help improve its recommendation services. The purchase price hasn't been announced, but venture capital investor and former TechCrunch editor Michael Arrington has said it was about $80 million.

eBay eBay said it will use Hunch's "taste graph" technology to provide its users with non-obvious recommendations for items based on their unique tastes. The company said it will also apply Hunch's technology to other areas such as search, advertising and marketing, in order to better surface product information based on its customers' tastes.

...
I think the purchase could improve eBay in a number of ways. 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 it clearly has a long way to go in matching Amazon, which moved ahead of eBay in sales last year. Earlier this year, Om wrote that Amazon should buy Hunch because of its ability to create an interest graph that can be tied into social commerce. And as retailers like Amazon and eBay build out almost limitless inventories, matching recommendations to these products becomes even more important.

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See also Hunch is now part of eBay!, Hunch blog


KDnuggets Home » News » 2011 » Nov » News Briefs » Why eBay is buying recommendation engine Hunch  ( < Prev | 11:n29 | Next > )