Monthly Archives: January 2015

Can Only Physical Store Retailers Succeed With Same-Day Delivery?

Retail StoreWhen same-day delivery started only as a trend for Amazon, Google and eBay, all of the above started the race at a fast pace.  Amazon started differently then the others, opening a multitude of distribution centers strategically nationwide, while Google Express launched a year ago on the west coast with store retailers like Target, Wal-Green’s and others.  Now, Google has rolled out its’ service in several major US cities and more reported to come.  Amazon has launched same-day delivery in many US cities, including Atlanta, as well as in Canada.  However, EBay has not had the success it anticipated.Only one of the big name web-based retailers has jumped shipped for now to rethink its plan to get same-day delivery to work.  EBay had a massive expansion outlook into 25 cities in 2014, however, last week the eBay Now app was pulled as a stand alone tool, rolling it into the eBay website and main mobile app.  The Motley Fool reported eBay’s pull back of the app, asking if the well-known e-retailer was an example of more to follow.  One of the aspects of eBay’s service mentioned was its’ order volume, which eBay Now just didn’t generate enough to sustain itself.

Order volume is essential for same-day delivery to work on a massive scale, as in the case of eBay, which many physical store retailers and department stores have.  It is apparently why one-time partner Macy’s, transitioned from eBay and launched same-day delivery on its’ own.  Macy’s recently launched same-day delivery Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, Houston, and Seattle.  Bloomingdale’s, its’ sister company, also rolled out the service Los Angeles, San Francisco, San Jose, and Chicago.  From Monday through Saturday, orders placed with Macy’s by 1pmare delivered the same day within a selected two-hour delivery window option.  Orders must be placed by 11am on Sundays.

After seeing Macy’s aggressively entering the race of same-day delivery, experts are seeing there is good reason to do so.  The physical store locations could have the key to crack the code for the popular service.  In an article by Forbes, president of Newmarketbuilders Carol Spieckerman said, “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.”

Wal-Mart is another retail leader that has exploded with implementing same-day delivery, even offering free service in various Canada areas in an effort to compete with Amazon.ca there.  Wal-Mart To Go is growing and it attests to the sensibility for physical store retailers to offer same-day delivery.  Web-based retailers are seeing that it takes a form of warehousing in close proximity to shoppers, even if it is partnering with a brick-and-mortar store.  Web-based retailers can also partner with a same-day courier like AQuickDelivery to save on delivery costs.  A big plus with using the Atlanta courier is it has the technology to optimize orders and experienced driver fleet, which in turn, will maximize profits.
Reference:  12.4.14, The Motley Fool, Rich Duprey, Same-Day Delivery Application Killed Off by eBay: Who Fails Next?

Uber Valuation At $40 Billion, Could Offer Same-Day Delivery

UberMany companies are after different ways to add convenience to a customer’s life when their shopping.  There is no better way than to be able to do it from their cell phone.  Uber is pursuing to offer this type of service for shoppers, as well as giving them a ride to get to wherever they need to go.  The transportation company appears to have some great innovation coming its way, as it is pursuing to provide same-day delivery as well.  As a result, Uber has, in a short amount of time, increased its company’s value.

Yahoo Finances reported that Uber has released that the company is worth $40 billion within less than 5 years of being in business.  Uber has stated it has received more money from venture capitalists than any private company this year, which is quite positive for a start-up.  This makes Uber have more investment value than American Airlines or Kraft Foods.  The big figure equates to Uber’s valuation doubling from only six months ago.

There are those that think otherwise, as far as Uber being a good investment.  Sam Hamadeh, CEO of research firm, stated, “It gives me a nosebleed.  You’re being asked to buy on pure speculation.”  Hamadeh isn’t touting that the service will be profitable until he sees it.  Uber also has regulatory hurdles, competition and revenue questions to answer also.

This is still very impressive, as there must be a reason why investors are flocking to Uber’s big idea.  The report highlighted the pros for the service.  Uber currently offers car service in 250 cities in 50 countries, which way up from 60 cities in 21 countries just a year ago.  The app is available in Asia, North America, and Europe.  The easy-to-use app links drivers and customers that need rides, acting as a convenient taxi service, but better.  It is no wonder why Uber has decided to branch off into offering same-day delivery of products.

Uber has already begun testing same-day delivery in several cities with every day consumption items such as fresh meals, ice cream and flu shots.  UberESSENTIALS rolled out in August in parts of Washington, DC, offering shoppers over 60 items, such as deodorant, chips, batteries, and popcorn.  This is probably one aspect of Uber that investors are seeing as a plus, especially as same-day delivery continues to thrive with brick-and-mortar and web-based retailers.

Google is one reason that Uber’s valuation has grown.  Uber has landed $200 million of investment capital via Google Ventures, which could led experts to believe that the two companies may have plans to work together in the future, even with same-day delivery.  Google has launched the service in major US cities as well, as the retailer competes with Amazon, Wal-Mart, Macy’s, and others.  A same-day courier likeAQuick Delivery is a viable partner that shoppers can call on that has its’ own transportation for its’ delivery needs.  The Atlanta courier can be an optional service provider for Uber as well.


Reference:  11.5.14, www.finance.yahoo.com, , Surge pricing: Uber’s $40B valuation. Worth it?

EBay Steps Back To Rethink It’s Same-Day Service EBay Now

eBayIt was just a year ago when the big web-based retailers, Google, Amazon and eBay, all began to announce their plans to change how we do retail with same-day delivery.  They didn’t just talk, but had the huge investments to prove it.  Months later, Google Express, formerly Google Shopping Express, has expanded into multiple US cities.  Amazon has 13 cities under its’ belt and a physical store in New York to match.  So what about eBay?

E-retail giant eBay decided to take a step back and rethink its’ same-day delivery program reported TechCrunch.  The retailer has officially pulled its’ same-day service eBay Now from the App Store over this past weekend, proving it is serious about the move.  The report made known the reality of eBay experiencing what most experts would say about the cons with same-day delivery–the high costs involved could dampen the profitability of it.  For a retailer’s same-day service to work, all the pieces must fit and eBay makes a super smart move realizing that.  EBay Now via the app consisted of allowing shoppers to order items from their phones and receive them the same day for $5.

EBay is “moving to core”, stated an eBay spokesperson about eBay Now.  This means the service will no longer be a standalone application.  It will be integrated within eBay’s main mobile app and website instead.  For the web-based retailer, the application is the central hub for shoppers and source for business generation.  The app could have been found to not be yielding the revenue to justify being on its’ own, resulting in the merge.  EBay Now was launched in 2012 in San Francisco and then expanded into San Jose and the Bay Area Peninsula. Ebay then added Manhattan, Brooklyn and Queens, New York, in addition to Dallas and Chicago.

EBay didn’t have its’ own same-day delivery plan to consider, but also the massive amount of competition on its’ level. Amazon and Google, both web-based, aren’t the only stiff competitors with the service.  Well-known department store retailer Macy’s has now stepped into the ring and isn’t pulling punches, as it rolled out same-day delivery in eight major US cities last month.  Working with start up company Deliv, Macy’s now offers the service in New Jersey, Seattle, Los Angeles, San Francisco, San Jose, Houston, Washington DC, and Chicago.  Sister company Bloomingdale’s, also rolled out the service in Los Angeles, San Francisco, San Jose, and Chicago as well.

The pricing structure appears to be what eBay is evaluating also.  Macy’s same-day service is only $5 for orders over $99.  For smaller orders, Macy’s charges standard shipping rates plus $5.  Google Express charges $4.99 per order or $10 a month and $95 annually.  Amazon’s same-day delivery charge is $5.99 for Amazon Prime members and $9.98 for Non-Prime members the first item and $.99 cents for each additional item.  Retail leader Wal-Mart and its’ “Walmart To Go” is $10 regardless of the customer’s order size.  Wal-Mart and Macy’s also provide a BOPIS (buy online, pick-up in-store) option for shoppers who don’t want to wait in line.

There is no question that eBay has much to consider to make a legitimate run at competing with same-day delivery.   Retailers involved with same-day delivery like Home Depot, Toys-R-Us, Walgreen’s, Urban Outfitters, and more, aren’t performing the deliveries themselves.  A same-day courier like AQuickDelivery can be a partner for eBay, not only in Atlanta, but also to expand into other US cities.  The Atlanta courier has the capabilities to implement same-day delivery nationwide and has the logistical expertise that eBay could use to establish itself in the retail market with optimal costs.

Reference:  11.24.14, www.techcrunch.com, Sarah Perez, Ebay Now Pulled From App Store As Company Rethinks Its Same-Day Delivery Plans