Despite media reports, EBay (EBAY) said Tuesday it will not be halting its same-day service, but will be scaling back its plans for it.
The company made the announcement after it was widely reported that the same-day service would be axed for good.
“There are no plans to shut down our same day delivery offering,” the company said in a statement. “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.”
The company debuted its EBay Now delivery services two years ago.
The reason the company is scaling back is likely do to mounting competition in the marketplace.
When the service was launched in 2012, EBay has some online dominance with few companies offering similar services. Now, those other companies have a strong hold.
Google offers Google Shopping Express in California and New York with companies such as Office Depot, REI and Toys “R” Us partnering with them.
Even Target is testing same-day delivery in a number of cities.
EBay had planned to expand the delivery service to some 25 new cities this year.
Its stock is down 11% year to date.
