EBay denies closing local delivery

While a news source claims that eBay (NASDAQ:EBAY) may have to shut down its eBay Now local delivery service, eBay says that is not the case.

VentureBeat reports that eBay Now is struggling. At the end of April, eBay quietly fired its team of "valets," and transferred its deliveries to third-party couriers. Simultaneously, it ended its relationship with early retail partners, including Best Buy (NYSE:BBY). In addition, eBay's director of local commerce and East Coast operations head recently left the company.

However, eBay denied that it is shutting down its eBay Now service. "There are no plans to shut down our same day delivery offering," according to an eBay statement emailed to FierceRetailIT.

"Our vision is to make eBay the most convenient way for consumers to shop locally, and to be the best partner for merchants to reach local customers in new ways." And, eBay continues to work with a wide variety of big retailers offering consumers same-day delivery, including Bloomingdale's, Walgreens, Macy's, Home Depot, Target and others, an eBay spokesperson told VentureBeat.

Still, eBay has scaled back the number of markets in which eBay Now will operate.

While Deb Sharkey, VP of Local at eBay, laid out an aggressive plan in October for the service to operate in 25 U.S. cities by the end of 2014, those plans have been shuttered.

"We are focused on supporting eBay Now in its current markets (San Francisco, San Jose, New York, Chicago and Dallas), and will continue to test and evaluate local capabilities that bring new services and solutions to our retail partners, and seamlessly connect buyers and sellers through shipping, delivery or in-store pick-up," the statement said.

Ultimately, eBay will compete in the local delivery realm with Amazon, Google, Walmart and other major players, but its recent challenges understandably leave industry insiders wondering about the future of the service.

For more:
-See this VentureBeat article

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