We are working on something in that area in Germany, Kijiji doesn't compete because it's ebay. That's my personal opinion. They chose the worst name ever and they don't have their priorities clear, it's not a "used goods" market with enforced standards it's just a market.

The basic problem in this area is reach, but that's not a problem or ebay so asking why kijiji fails is not going to answer your questions for a startup.Different situation different problems.