eBay denied it was closing down eBay Now after a report surfaced in an online publication, but it is scaling back its efforts to offer a same-day delivery service. The news comes four months after eBay CEO John Donahoe downplayed the service in a presentation to analysts.
Donahoe had warned Wall Street analysts in February not to project their own experiences when evaluating the potential of same-day delivery. “In this room, by and large, we have money but no time.” But the bulk of consumers either have more time than money, so they’re willing to search for value, or they like shopping and view it as entertainment.
Venture Beat reported on Tuesday that eBay planned to shut down eBay Now, citing an unidentified source.
eBay spokesperson Kari Ramirez responded to EcommerceBytes inquiry with the following statement:
“Our vision is to make eBay the most convenient way for consumers to shop locally, and to be the best partner for merchants to reach local customers in new ways. There are no plans to shut down our same day delivery offering. 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.”
eBay’s Chris Payne told Fortune it no longer had plans to expand eBay Now to 25 U.S. cities by the end of 2014, and reiterated Ramirez’s statement that eBay would focus on the service in four cities.