eBay's acquisition of same-day delivery service provider, Shutl, poses a threat to rival online retailer Amazon.
The London-based technology start-up, Shutl, was launched in 2009 and the company offers same-day delivery service by connecting online retailers with local same-day couriers. Shutl is also well-known for delivering online shopping orders in 90 minutes or less time.
"I have the utmost appreciation for the eBay team and am excited and honored for Shutl to be a part of their plans, starting today in Chicago. eBay's bold vision to redefine local commerce is one that fits perfectly with what we have set out to achieve at Shutl. Approximately 75% of commerce happens within 15 miles of the consumer's home. E-commerce is quick and convenient, two things that delivery is not. Together with eBay, we believe that we can transform this market and fulfil our mission," says Tom Allason, founder and Chief Executive Officer of Shutl.
eBay's deal with Shutl will fortify its position in the online retail segment and give the company an edge over rivals such as Amazon. With the help of Shutl, eBay Now, the company's same-day delivery service will get a boost in many cities.
Chicago will be the first city where eBay Now delivery service will launch with the Shutl courier network. The company also plans to extend the service in 25 major cities in the U.S. and also in London by the end of 2014.
eBay also announced the launch of its new option for customers to pick their orders in select retail stores like Toys R Us and Best Buy.
The trend towards online shopping has increased in the past and many customers tend to make purchases online at the convenience of their home. eBay's acquisition of Shutl will mean that customers in select cities will be able to get delivery of their orders quicker than before.
With the Shult delivery service on-board with eBay Now, it will be interesting to see if the online retailer is able to attract more customers to shop on its website.
