EBay Pulls EBay Now Same-Day App As It Rethinks How To Compete

One big name e-retailer has been running with Amazon and Google for some time when it comes to same-day delivery. EBay launched "eBay Now" in 2012 and began to expand in multiple US cities, with plans to eventually operate in 25 different markets. It appeared the company was making a strong push with the service, acquiring UK-based delivery startup Shutl in October of last year. Shutl then was over the actual delivery operation and not eBay's own driver fleets. However, eBay has now turned their service in a different direction starting with their app.

TechCrunch has reported that eBay is rethinking its' same-day service eBay Now and has officially pulled eBay Now from the App Store over the weekend. The app allowed mobile customers to shop with it from local retailers and have their online purchases delivered the same day for a $5 fee. In the article, an eBay spokesperson stated that the eBay Now service is “moving to core.” This means eBay Now will no longer be a standalone application, but will be integrated within eBay’s main mobile app and website. It's clear that eBay is going back to the drawing board for delivering same day with eBay Now.

EBay knows that its' same-day delivery service has to be right in order to thrive, and at the same time, compete. In today's same-day picture, Amazon and Google aren't the only companies leading the pack any longer. Physical store retailers have rolled out same-day delivery and have been just as aggressive as they are. Wal-Mart's "Wal-Mart To Go" is in a number of US cities and in Canada. The retail leader even has opted to offer free same-day service in Canada to compete with Amazon and attract enough shoppers to gain a good share of the market, plus holiday sales. Since its' stores are just about everywhere, it makes sense to offer the same-day delivery option.

Newcomer Macy's is another brick-and-mortar retailer that has joined the ranks the eBay will now have to contend with as well. Last month, Macy's launched same-day delivery in 8 major US cities, including Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, Seattle, and New Jersey. Sister company Bloomingdale's also launched the service in Chicago, Los Angeles, San Francisco, and San Jose. Customers can get their online orders the same day from Macy's if placed by 1 pm Monday through Saturday and by 11am on Sundays, all within a selected two-hour delivery window.

Department stores indeed have stepped in as real game changers against web-based retailers. President of Newmarketbuilders Carol Spieckerman stated in a Forbes Magazine article, “The big breakthrough is department stores finally coming around to the reality that not everyone loves to shop (a premise that most have myopically held onto despite evidence to the contrary). Department stores’ stubborn store-centricity may have held them back in the digital realm, but now Macy’s is showing everyone how to play a mean game of catch-up on multiple fronts.”

No matter how well-known a retailer like eBay is, the pricing structure must fit into a company's business model in order for same-day delivery to work. Macy's currently charges only $5 for all orders over $99. Google and Amazon's same-day delivery fees are around the same price for customers. EBay was charging the same, however, it appears something didn't allow the retailer to profit as needed, and it has made a super smart move to figure it out. If Shutl isn't working, EBay could take the option of partnering with a same-day courier like A-1 Express to implement same-day delivery nationwide. The Washington DC courier has the logistical expertise to create and innovate an optimal delivery solution for EBay with optimal costs.