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eBay purchases mobile app maker Critical Path

December 16, 2010 — 10:02am ET | By Jason Ankeny

eBay has acquired smartphone application developer Critical Path Software, the digital marketplace's partner on apps including the popular eBay for iPhone. Financial terms of the deal were not disclosed. More than 14 million users have downloaded eBay for iPhone since eBay and Critical Path launched the application in July 2008; the free app now spans eight languages and 190 countries. The firms have since joined forces to build iPhone apps spotlighting the eBay Classifieds, StubHub and Shopping.com services. According to eBay, bringing Critical Path in-house will enable the company to accelerate its mobile efforts.

Earlier this week, eBay reported that for the second year in a row, mobile shopping trends worldwide peaked on the second Sunday of December--a.k.a. "Mobile Sunday"--with mobile gross merchandise volume in the U.S. increasing 127 percent year-over-year to nearly $5 million. Mobile GMV worldwide grew 165 percent to $13 million, eBay adds. Mobile shopping in the U.S. peaked between the hours of 1 p.m. and 4 p.m. ET, averaging over 9,500 transactions per hour. The clothing and accessories category topped GMV sales in the U.S., followed by cars and trucks, jewelry and watches, sporting goods and auto parts. Broken down by number of transactions, clothing and accessories remained in the top spot, followed by collectibles, mobile phones and accessories, toys and sports memorabilia.

eBay previously stated that its mobile sales increased 146 percent year-over-year during the Nov. 29 Cyber Monday shopping event--in addition, eBay's Black Friday sales in the U.S. across its suite of mobile applications almost doubled over the previous year. The company notes its worldwide mobile initiatives remain on track to generate more than $1.5 billion in sales this year, nearly triple the $600 million eBay reported in 2009. Since the introduction of eBay's first mobile application in July 2008, on-the-go consumers have bought or sold nearly 30 million items.

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