EBay Reportedly Shutting Down Same-Day Delivery Service [Updated]

Competitors aggressively offer similar businesses

EBay may be closing shop on its same-day eBay Now delivery service. VentureBeat reports that the PayPal-owned venture is shutting down the local-focused arm of its business, likely from the growing competition in the space.

According to an EBay statement, however, the company denies it is shutting down the service. "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," read the statement. "There are no plans to shut down our same day delivery offering. 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."

EBay Now launched in 2012 as one of the company’s extensions into the growing local delivery space. But over time companies like Google, Uber and Postmates also have aggressively been going after to differentiate themselves as a middleman between bricks-and-mortar and online retailers.

EBay specifically has tried to carve out a niche for itself in working directly with big retail names like Macy's, Walgreens, Target and Home Depot to grow its local footprint the past couple of years. EBay Now is an iPhone and Android app that works in the San Jose, San Francisco, New York, Dallas and Chicago markets. The app lets shoppers buy select items from local retailers and have them delivered within a couple of hours for a $5 fee.

Google offers a similar service called Google Shopping Express in California and New York that counts Office Depot, REI and Toys "R" Us as partners. Target also began testing its own same-day delivery option in Miami, Minneapolis and Boston.

According to VentureBeat, EBay laid off some staff associated with the local services earlier this year and has nixed its plans to expand the service into other cities. 

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