eBay (Photo : Reuters)
By the end of July, customers of eBay would no longer be able to avail of eBay Now's same-day delivery service. The ecommerce site announced on Monday the change after the company realized most of the items for sale in eBay are not urgent such as groceries or diapers that need to reach the buyer at the soonest time.
The service, introduced in 2012 and available in New York, Chicago, Dallas and parts of the Bay Area, was difficult for individual vendors who ran their business from home, explains Fortune. The bulk of items listed in eBay are previously owned goods and collectibles, further confirmed by its acquisition last week of Twice, a second-hand clothes vendor.
Majority of eBay Now employees affected by the closure of the service would be deployed to other tasks in the company, according to an eBay spokesperson.
Also due for removal from the ecommerce site are its eBay Motors, eBay Fashion and eBay Valet apps in line with the firm's refocusing to its flagship app, especially in the light of PayPal's split from eBay. The separation, after 13 years of partnership, spells good news for eBay shareholders who automatically get a stock of PayPal too.
PayPal has resumed trading in NASDAQ (NASDAD:EBAY) this week as a stand-alone company, notes Motley Fool. Notwithstanding the split, eBay - which was the source of over 30 percent of PayPal's revenue in 2013 - kept PayPal as a payment option for the bulk of its business.
Like some real-life couples, the two had a corporate divorce, but remain friends and are still enjoying the benefits of their 13-year-marriage. It's a good decision for eBay because of PayPal's wide reach at 203 markets and trading 30 currencies globally. In Q2 2015, PayPal processed over $1 billion in transactions which is not surprising considering that one in three adults in the U.S. pay with a PayPal account.
