Ebay And Telefonica Shake Hands

Online auctions platform eBay has inked a deal with European mobile services provider Telefonica to have its mobile shopping app pre-installed on smartphones sold by Telefonica's O2 unit in the UK.

In a first-of-its-kind deal, eBay, which is taking huge strides in bringing its mobile app to as many mobile platforms as possible, said that the move will also see similar pre-install deals across the world, starting with Telefonica's European market.

Ebay had earlier reported that the revenue from its mobile shopping app was $2 billion in 2010 and it expects the figure to double this year.

O2 on the other hand, will take a cut from the revenue made by eBay through its mobile app on O2 phones. O2 representatives said during the Mobile World Congress that the company will also install a folder on each device which will contain pre-loaded apps and those that are downloaded separately. Customers will be able to transfer the folder if they switch to a new device.

Glyn Povah, head of content marketing at O2, said in a statement “My main objective is to get brands that customers know and love in front of them. We will work with brands to drive value, through preloaded apps or in the app store folder so that access for customers is easy.”