You should look into Kijiji in more depth. In addition to the posting above, Kijiji Canada has more traffic than Craigslist (by a factor of 2!). Craigslist, as a pioneer, has significant mind share, especially in the major cities. However, how they (CL) evolve will be influenced in part by how they deal with a competitor like Kijiji…

One thing about Craigslist — it’s a pretty weird site the first time you get there, with lots of non-local content in places you’d expect to find local. When Ottawa’s Craigslist was new, instead of being empty it seemed like it was just full of non-local ads. For established Craigslist cities I don’t think Kijiji stands a chance, but as they start to expand into smaller cities (like, say, Ottawa) I think Kijiji’s better separation of cities’ content is a strong selling point for people not accustomed to either service.

It’s easy to assume that Craigslist’s established value/mindshare in big tech cities brings some value to smaller cities with more traditional industries, and I’m not sure that’s the case — Craigslist’s big San Francisco presence doesn’t really help people in Saskatoon, and when both Craigslist and Kijiji open their Saskatoon sites all they’ll be able to do is hope that they reach that critical mass of initial local ads first.