Following Google’s footsteps, Yahoo is moving towards integrating a chat module inside the next Yahoo Mail Beta (obviously using AJAX technology). Since Google has already done it, Yahoo must be looking forward to develop something innovative, aimed at improving user experience and should be nothing less than that.
Although no specific details regarding the features have been released, initial rumors suggests that users can reply to email via instant messages, but this works only if he or she uses Yahoo and eventually it would be extended to Windows Live Messenger also. Yahoo is also planning to allows users archive their chat sessions, just like Google does, but yet again it will raise controversies regarding privacy and stuff like that.
Anyway, its good to see some competition among these giants. In terms of market share, Yahoo still leads the race, but its userbase is sharply declining, most of them are now turning towards Google and other competing products. I think Yahoo considerably lost market share after Google integrated GTalk inside Gmail and now hopes to regain its back.
Source: BetaNews

wrote, on November 10th, 2006
Google Gmail had better keep up with Yahoo! Mail, I have seen and liked better the Yahoo! Mail Beta frankly. Which is dissapointing, since I like Google better than Yahoo (lesser of two evils).
wrote, on November 10th, 2006
Yahoo finally seems to be catching up on their lost market.
Regarding market share of Yahoo, Thilak, can you be a bit more clear, and tell us the source of that information?
wrote, on November 11th, 2006
Vyoma: I read it couple of months ago on Wikipedia
wrote, on May 24th, 2008
Yahoo apparently switched my a/c to the above (without asking). Now I can’t access my e-mail so I switched to google mail.