Will Deliv Win Out In Same-Day Delivery?

With all of the hype regarding Google, Amazon and eBay, it's tough for shoppers and retailers to hear news of an underdog like Deliv with its' crowd-sourcing approach to win out in same-day delivery. The Washington Post recently discussed how Deliv could become the frontrunner in the last-minute delivery race.

Deliv's founder and CEO Daphne Carmeli started the company in 2012 with a different core objective than her predecessors like Kozmo and Webvan. Her take on what should be driving what shoppers want may even be in contrast to Google and Amazon. “The market opportunity for same-day delivery has very little to do with meeting the needs of people who want things fast,” Carmeli said. Others in the same-day delivery race are indeed after making the service cheap, hence attractive to shoppers. From Carmeli's standpoint, customization is what will ultimately attract and keep shoppers.

She touted in the article that shoppers desire flexibility and predictability. A shopper can have their items delivered within a two-hour window between their haircut and their kid's soccer game. Also, its' for shoppers who have to change their delivery time for whatever reason and Deliv gets it done. This is definitely a high level of service, even the type of first-class service that a hotel provides its' guests. If it is built right, it is a service that shoppers will pay for, especially if the service is inexpensive.

Currently, Deliv is making a lot of head way relative to growth within its' primarily partner markets. Deliv has amassed 250 retail partners, including Macy's, Foot Locker, Brooks Brothers and Neiman Marcus. It also has expanded to 8 metropolitan areas throughout the US. When Carmeli first began conceptualizing Deliv, she found that the majority of the stores of the top 200 retailers were in malls. “I can walk around Disneyland, buy stuff, and have it show up at my hotel. Why can’t I do that at the mall?”, Carmeli told mall owner and Macerich operator Art Coppola.

To Coppola, it makes sense for malls to get on board. Shoppers don't have to be concerned with totting heavy bags around the mall all day. If the customer lives in one of Deliv's service zones, for a $5 fee, they can have Deliv transport those bags to the front door of their home while they stay at the mall. Macerich vice president Kurt Ivey stated in the article, “we are not making money on this. We are not trying to generate revenue, we are trying to enhance the [shopping] experience.” Ivey mentioned this service keeps the shopper at the mall, instead of going to their cars to drop off their bags, because many shoppers don't come back afterwards.

Deliv could have a same-day delivery system that works, however, one downside is the company has no control of merchandise pricing. Pricing is totally set by the retailer. Also, what if the retailer decides to offer same-day delivery itself like Wal-Mart. Retailers can partner with a same-day courier like A-1 Express and offer the same level of service, even for item returns. The Chicago courier also has a national footprint, which is ideal for mall retail chains to have a one-stop source for all of their locations.

Reference: 12.12.14, Washington Post, Sarah Halzack, Will the same-day delivery war be won by a competitor you’ve never heard of?

EBay's App For Same-Day Gone, Could Other Retailers Fail?

There is no doubt that there is something huge behind same-day delivery, because if there was not, there wouldn't be so many consistent investments by big name retailers into it. EBay is one of the e-retailers that was hoping to strike gold with the service, pushing to make eBay Now work. However, it appears the results eBay was hoping for didn't materialize, leaving eBay to pull altogether the eBay App last week.

EBay's retooling of its' same-day delivery program is the reality that even with a high profile, heavy investments and resources, if all of the pieces of puzzle aren't there, the service will not work. No matter how much marketing and advertising is done, the costs involved with same-day delivery is what will ultimately impact the success of a company. EBay had all the components, but it came to the point where it was about the ability to grow it, versus just the establishment of it alone.

The well-known web-based retailer launched its' service in 2012 in San Francisco and grew. EBay had plans to expand into 25 other cities this year, especially after its' acquisition of delivery company Shutl. This would be eBay's link into utilizing independent couriers to perform same-day delivery for it. Therefore, a same-day courier like A-1 Express would become a partner for eBay to outsource to, depending upon the location of the service request. This happened after eBay Now showed signs of a downward spiral when the independent valets no longer were being used. The Shutl idea was set in place to reduce the delivery costs of eBay transporting itself.

Even with all of the shifts, eBay Now just didn't have the order volume to sustain itself. The question is will this happen to other retailers? EBay was charging $5 for the service, which is what many other high profile retailers are charging right now. One of the latest top retailers Macy's has joined the ranks, completely diving into same-day delivery right before the holiday shopping season began.

Formerly partnered with eBay, Macy's has now rolled out same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's rolled out the service Los Angeles, San Francisco, San Jose, and Chicago also. From Monday through Saturday, orders placed with Macy's by 1 pm, are delivered the same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.

Macy’s charge for its' service is $5 bucks as well. Experts think Macy's will work, especially with its' volume of locations to keep down delivery costs. Wal-Mart is in the same boat also, yet charges $10 for its' service, regardless of order size. Amazon offer its' Prime members same-day delivery for $5.99. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year, which has a source of partnering with physical retailers for its' same-day service. Other retailers failing with same-day delivery is yet to be seen, however, A-1 Express is a viable option for retailers to save on delivery costs. The Chicago courier is a source nationwide for same-day delivery and has the logistical expertise to help any retailer thrive.

Reference: 12.4.14, The Motley Fool, Rich Duprey, Same-Day Delivery Application Killed Off by eBay: Who Fails Next?

EBay Pulls EBay Now Same-Day App As It Rethinks How To Compete

One big name e-retailer has been running with Amazon and Google for some time when it comes to same-day delivery. EBay launched "eBay Now" in 2012 and began to expand in multiple US cities, with plans to eventually operate in 25 different markets. It appeared the company was making a strong push with the service, acquiring UK-based delivery startup Shutl in October of last year. Shutl then was over the actual delivery operation and not eBay's own driver fleets. However, eBay has now turned their service in a different direction starting with their app.

TechCrunch has reported that eBay is rethinking its' same-day service eBay Now and has officially pulled eBay Now from the App Store over the weekend. The app allowed mobile customers to shop with it from local retailers and have their online purchases delivered the same day for a $5 fee. In the article, an eBay spokesperson stated that the eBay Now service is “moving to core.” This means eBay Now will no longer be a standalone application, but will be integrated within eBay’s main mobile app and website. It's clear that eBay is going back to the drawing board for delivering same day with eBay Now.

EBay knows that its' same-day delivery service has to be right in order to thrive, and at the same time, compete. In today's same-day picture, Amazon and Google aren't the only companies leading the pack any longer. Physical store retailers have rolled out same-day delivery and have been just as aggressive as they are. Wal-Mart's "Wal-Mart To Go" is in a number of US cities and in Canada. The retail leader even has opted to offer free same-day service in Canada to compete with Amazon and attract enough shoppers to gain a good share of the market, plus holiday sales. Since its' stores are just about everywhere, it makes sense to offer the same-day delivery option.

Newcomer Macy's is another brick-and-mortar retailer that has joined the ranks the eBay will now have to contend with as well. Last month, Macy's launched same-day delivery in 8 major US cities, including Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, Seattle, and New Jersey. Sister company Bloomingdale's also launched the service in Chicago, Los Angeles, San Francisco, and San Jose. Customers can get their online orders the same day from Macy's if placed by 1 pm Monday through Saturday and by 11am on Sundays, all within a selected two-hour delivery window.

Department stores indeed have stepped in as real game changers against web-based retailers. President of Newmarketbuilders Carol Spieckerman stated in a Forbes Magazine article, “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.”

No matter how well-known a retailer like eBay is, the pricing structure must fit into a company's business model in order for same-day delivery to work. Macy's currently charges only $5 for all orders over $99. Google and Amazon's same-day delivery fees are around the same price for customers. EBay was charging the same, however, it appears something didn't allow the retailer to profit as needed, and it has made a super smart move to figure it out. If Shutl isn't working, EBay could take the option of partnering with a same-day courier like A-1 Express to implement same-day delivery nationwide. The Washington DC courier has the logistical expertise to create and innovate an optimal delivery solution for EBay with optimal costs.

Experts Say Macy's Same-Day Delivery Will Work!

After Amazon and Google has made their strategic moves with establishing same-day delivery, Macy's made a move of its' own. With rolling out same-day delivery in multiple US cities demographically fit for the service and considering every aspect of Macy's, experts are commenting the popular department store could end up being the front runner.

Forbes recently reported how Macy's could lead the pack and win out with same-day delivery. Macy's aggressively jumped all the way into the service last month, launching same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's also rolled out the service Los Angeles, San Francisco, San Jose, and Chicago. Customers that place their online orders with Macy's by 1 pm, will have their items delivered same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.

Macy’s also stacks up against the competition with its' pricing for the service. Big name retailers like Amazon offer its' Prime members same-day delivery for $5.99. However, Non-Prime members pay $9.99 for the first item and $.99 cents per additional item. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year. Wal-Mart even offers same-day delivery in multiple cities and its' service Walmart To Go costs $10, regardless of the order size. Wal-Mart does offer free same-day service in parts of Canada to compete with Amazon, yet currently not in the US.

Some experts weighed in on the prospect of Macy's be on track to very well get in front of the competition. President of Second To None, Jeff Hall, stated, “Same-day delivery, including two-hour delivery windows, will be hugely appealing, as it crushes so many of the inconveniences of shopping in-store: drive time, parking, traffic, etc. Macy’s is at the forefront of an emerging customer expectation that will be growing exponentially in the next few years.” With the growth of tech gadgets and the comfortability of shopping online, many shoppers are in fact engaging into more outside-of-the-store shopping.

In the article, 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.” Forbes also mentions how the industry insiders of the RetailWire BrainTrust were generally positive about Macy’s offering same-day delivery, a retailer known for being ahead of the omni-channel curve.

Deliv is the start-up delivery company handling the physical same-day service for Macy's utilizing a crowd-sourcing approach in which everyday people pick up and deliver for them. One Deliv driver will pick up multiple orders and deliver all of them, which is what a same-day courier like A-1 Express would offer also. The San Francisco courier has a national footprint and logistical expertise to perform cost-effective deliveries on time. A-1 Express is an experienced courier capable of accurate deliveries, in addition to returns, real-time address adjustments and more, which would be needed for Macy's during the busy holiday shopping season.

Reference: 11.21.14, www.forbes.com, Tom Ryan, Same-Day Delivery May Be A Win For Macy's

Uber Makes Move To More Same-Day Delivery

It's a big deal when every large retailer and online company make investment after investment into a service that gets customers their products in the same day. The demand for same-day delivery continues to grow, just as many other services and products were moving into worldwide usage like the cell phone. Faster shipping and fast delivery offers shoppers the convenience they are after and retailers know it. This is why companies that offer similar service products are quickly deciding to join the action--and the profit.

Uber is a popular transportation service that can get anyone from point A to point B fast. With the growth of same-day delivery, it makes sense for Uber to do the same thing with online and physical store items. The Wall Street Journal (WSJ) reported the proof of Uber's plans regarding same-day delivery. Uber has picked up Google's Tom Fallows, former head of same-day delivery and e-commerce expert, to assist with its' business plans for growth.

The WSJ received an e-mail statement via Google from Tom Fallows regarding his shift to Uber. “Even though the next stage of my career takes me outside Google, I’m really excited to watch Google Express continue to thrive and expand”, stated Fallows. Google indeed has thrived since the two years Fallows was involved in rolling out the new, aspiring service. Now, Google offers same-day delivery is several major US cities, including its' service launch in Washington DC, Boston and Chicago. The new cities also brought along three new merchants, one located within their respective cities.

Uber is in hot pursuit to compete with retail giants, namely Amazon, to get a share of the retail market and move products for physical store chain. Google Express, formerly known as Google Shopping Express, provides brick-and-mortar retailers exactly what they need relative to same-day delivery. Google has partnered with Target, BestBuy, Wal-Green's, and more to get their products into a customers' hands within hours. Barnes & Noble has also joined with Google Express, closing a number of stores and offering customers same-day delivery of their online orders.

Same-day delivery isn't new to the transportation/taxi company. Uber has already been testing deliveries of items including ice cream, flu shots and fresh meals. UberESSENTIALS was also just launched in August in parts of Washington, DC, letting users order over 60 items, such as deodorant, batteries, chips and popcorn. Inspite of the talk regarding Google and Uber, the two many end of working together. Google Venture has also invested more than $200 million into Uber's business.

Google and Uber could end up working together to compete against Amazon, Wal-Mart, eBay, and others. The common thread for accomplishing success with same-day delivery is the actual delivery system itself. This is why a same-day courier like A-1 Express would be ideal for any retailer looking to tackle same-day delivery and make it a core competency service product. The Los Angeles courier understanding fast deliveries from a simple approach and with quick implementation, which is very fitting for the upcoming holiday season.

References: 11.7.14, The Wall Street Journal, Alistair Barr and Douglas MacMillan, Uber Picks Up Google’s Head of Same-Day Delivery