The eBay valet may show up with the purchase items by bicycle or automobile, depending on the size and quantity of the goods. The customer will pay the valet with a credit card swiped via a Paypal reader. eBay Now orders can be delivered in about an hour, as stated on the eBay Now website (delivery times are dependent on proximity to the store, traffic, or the size of the order). A customer could easily sit at a Starbucks for an hour, waiting for a hand delivered order from Target, nursing a coffee while browsing a Twitter news feed on his/her iPhone.
What are competitors doing?
Other companies are also wooing consumers for a bite in the same day delivery space. Google Inc (NASDAQ:GOOG) recently launched Google Inc (NASDAQ:GOOG) Shopping Express in March which is currently being piloted in the San Francisco area. Target Corporation (NYSE:TGT), The Home Depot, Inc. (NYSE:HD), and American Eagle Outfitters (NYSE:AEO) are some of the big retailers participating as well as some local stores such as Blue Bottle Coffee. Google is in beta-testing mode with this service, and is looking for test customers. To sweeten the deal for testers, the service is free for six months.
Amazon.com, Inc. (NASDAQ:AMZN) has long been entrenched in the same day delivery business with their Local Express Delivery option since 2009. The service charge is more expensive than eBay Now, as Amazon.com, Inc. (NASDAQ:AMZN)charges $8.99, with an additional charge of $0.99 per item. The service is available in 10 cities, but the customer must order early to beat the mid-morning deadline to give warehouse personnel adequate time to process orders, load delivery trucks, and travel to the order destination.
Wal-Mart Stores, Inc. (NYSE:WMT) has created “Wal-MartToGo” to directly compete with Amazon.com, Inc. (NASDAQ:AMZN). It is a same day delivery service available only in a few cities. The service charge is $10, with no minimum order required. Inventory is dependent on what is available in the participating local Amazon.com, Inc. (NASDAQ:AMZN) stores, and the final order is delivered by the United Parcel Service, Inc. (NYSE:UPS).
Conclusion
eBay has upped the ante in the same day delivery battle. eBay is dedicating investments and resources to take advantage of the increasing trends of online shopping on iPhones and iPads. Amazon has long been the dominant player in the same day delivery battle, but eBay is well positioned to take away some market share with eBay Now, which is aligned to the company’s aggressive mobile strategy.
The article Accelerating Same Day Delivery With eBay Now originally appeared on Fool.com and is written by Sergio Balatan.
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