Payments

The First Blow to Same Day Delivery, eBay Now

MEDICI

Ebay Now is the same day local delivery service from the e-commerce giant. It seems eBay wishes to frame some new strategy to handle the high costs associated with running such a delivery service. The iOS mobile app for eBay Now was recently pulled from the App Store. The app allowed customers to shop using their phones and receive the order the same day by paying an additional $5 fee.

An eBay spokesperson told TechCrunch that eBay Now won’t be a standalone app and would be integrated into eBay’s main mobile app and on the website as well. The service was initially planned to expand in 25 markets by this year-end but no actions have yet been taken. In order to better manage the eBay Now service, eBay had acquired same-day delivery startup called Shutl last year. Earlier this year, Shutl was put in charge of managing the fleet of eBay Now deliverers.

A number of big-brand retailers are already using the service actively. Some of them include Home Depot, Target, Macy’s, Walgreens, Best Buy and other popular ones. A new threat is coming up from Amazon which itself is rolling out same day delivery service in select regions across the U.S. It’s not like eBay Now would be shut off completely as the website for the service is still up-and-running.

As reported by Reuters, eBay would be focusing more on expanding logistics options to smaller merchants. The company is working on a new service to allow smaller merchants to allow shoppers to pick up items bought online in local stores. eBay is looking to offer this delivery option across U.S., Germany and other markets as well. This particular delivery option will follow a “click-and-collect” model.

EBay CEO John Donahoe told Recode that shoppers would be more inclined to buying online and then collect in-store for free. He is also of the view that shoppers wouldn’t want to pay extra for delivery on a regular basis. With the CEO sharing such views, it seems eBay Now may soon retire.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

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