EBay ends same-day delivery, shifts focus to click-and-collect

EBay (NASDAQ:EBAY) pulled its same-day delivery service app from the App Store. The Now app, which allowed customers to shop from their phones and receive the items from local retailers later that same day, will now be dropped as the company focuses on click-and-collect.

It seems eBay is now rethinking the high cost of offering same-day delivery, reported TechCrunch. According to a company spokesperson, though the standalone application no longer exists, the idea will be folded into eBay's main mobile app and website.

The delivery service launched in 2012 in the San Francisco area and later expanded into San Jose, the Bay Area peninsula, Manhattan, Brooklyn, Queens, Dallas and Chicago. Originally, the company announced the app would expand into 25 markets by the end of 2014.

To accommodate the service, eBay acquired British startup Shutl in 2013 to make same-day deliveries.  

Retailers who had partnered with eBay on Now include Home Depot, Target, Macy's, GNC, Walgreens, Best Buy, Toys R Us, Office Depot, Urban Outfitters and RadioShack.

So while the service will morph, it will not completely go away. EBay will focus on providing a click-and-collect service for smaller sellers, with annual sales under $100,000.

Last month, eBay's CEO John Donahoe said that same-day delivery was costly and not essential for eBay's core consumer, reported Re/code. He went on to say that same-day delivery was more important for grocery deliveries, consumables and that it was "not really the sweet spot for eBay."

EBay debuted a test of its click-and-collect service in the U.K. in late 2013. And after initial success, the online marketplace extended its partnership with Argos so that shoppers can now choose from a wider range of eBay sellers for pick up at 650 Argos stores.

*This story originally appeared in FierceRetailIT's sister publication, FierceRetail.

For more:
-See this TechCrunch article
-See this Re/code article

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