As background, Shutl is about efficient use of logistics. Every Internet retailer needs to ship goods on an on-demand basis to the marketplace. In a connected world (where social media is utilized as an efficient method of connecting businesses), nimble shipping services are signing up to compete for that business on a more timely basis.
I was the speaker before Shutl at CLDA (Customized Logistics and Delivery Association - previously known as the Messenger Courier Association) in May, so learned some things I would not have otherwise.
At the world's largest e-commerce conference where I spoke this week, Ben Gordon, founder of BG Strategic Advisor's asked me a provocative question.
"What's the reason for the eBay Shutdown?" Here is my perspective from the front line:
499 of the Top 500 Internet Retailers need an alternative to Fulfillment By Bezos ("FBB").
In my opinion, eBay owns the Uber of E-commerce (Shutl - acquired in October of 2013). It's untapped value could be on the level of PayPal.
Why? For every e-commerce company there is enormous 'Brand' risk between the time a customer clicks 'Buy' on their site, and the product shows up on the doorstep.
If you're the CEO of one of the 499 (not Amazon), how do you tell your board of directors that your strategy is to outsource same-day/same-hour to Amazon (NASDAQ:AMZN) via FBB?
Prior to CLDA conference in Arizona last month, all attendees received an email (and I paraphrase) "eBay/Shutl is looking to work with companies like some of you (CLDA members), and will look to meet with you. This is a great opportunity to learn what Shutl is looking for in delivery partners and shouldn't be missed!"
Within minutes of reading I "got it".
Shutl is the leading platform. And it's already executing brilliantly by being first to recruit CLDA member companies (established infrastructure of same day talent) among other things.
Why tie up all sorts of capital like Amazon in fulfillment centers when it's possible to serve thousands of Internet retailers with already established professional delivery networks? Answer, you shouldn't.
What about Google Shopping Express (NASDAQ:GOOG) which just launched in Manhattan? How does it fit into the mix? Follow me on Seeking Alpha and you'll be the first to find out!
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.