Report: eBay plans to shut down same-day service

|About: eBay Inc. (EBAY)|By:, SA News Editor

A source tells VentureBeat eBay (EBAY -2.3%) plans to shutter its once-hyped Now local/same-day delivery service.

The site observes Now has already seen a string of setbacks: eBay's local commerce chief and East Coast operations head have both departed, and some early retail partners such as Best Buy are gone.

CEO John Donahoe downplayed eBay's same-day efforts in February. The company was more upbeat in 2013, promising to bring Now to 25 cities by the end of 2014 with the help of U.K. acquisition Shutl.

Today, eBay only says it's "focused on supporting" Now in its 5 current markets, and isn't "announcing any new market expansions at this time."

Amazon (AMZN +1.9%) must be happy to see the report. Unlike eBay and Google (just expanded local delivery to the whole of NorCal), Amazon is relying on its own fulfillment infrastructure (replete with AmazonFresh vans) instead of 3rd-party retailers for same-day. Its strategy has higher up-front costs, but could also allow for more efficient delivery.

eBay continues to trade lower following news of PayPal chief David Marcus' departure.

Update: eBay denies having plans to shutter Now, but also suggests it's not currently looking to expand beyond Now's existing markets.