eBay's same-day delivery service stalls out
When we checked in on eBay Now last fall, its leaders were brimming with optimism, announcing plans to bring the same-day delivery option to 25 more cities by the end of 2014. Skip forward to today, however, and it's apparently a different story. VentureBeat sources claim that the service is in serious trouble; in addition to losing executives and getting rid of first-party drivers, eBay Now is reportedly "blowing a ton of resources" and may be near shutting down. While the speedy courier option has done well during busy holiday shopping seasons, it reportedly doesn't have enough day-to-day business to stay afloat.
Some of this could be inherent to the business model. Where something like Amazon's same-day shipping is really just another way to expedite your order, eBay Now is a "personal shopping service," according to one tipster. Every customer needs special treatment as a result, and that may not be viable under the current approach.
When asked, eBay told VentureBeat that it was "committed to local delivery" and still plans to "test and evaluate" services that connect stores to buyers in their area. However, the company adds that it's focused on supporting eBay Now in the cities where it operates today, and isn't headed to new areas "at this time." The statements don't rule out future expansion, but you shouldn't count on eBay's fast shopping system reaching your 'burg any time soon.
