Macy’s, the nation’s largest department store, is starting to compete with Amazon by offering same-day delivery in 17 markets. In order to do this, the retailer is using a delivery service called Deliv. In the same vein as Uber, Deliv is a startup that has a band of contracted delivery drivers on hand who pick up customers’ orders from a store, and then drop the orders off directly at the shipping address.
Macy’s experimented with same-day delivery in eight markets last fall. Its customers appreciated the option to receive a package within hours, proving the experiment to be successful and prompting the retailer to expand same-day delivery to nine new markets. Macy’s also has plans to expand fast delivery at Bloomingdale’s, its high-end counterpart.
Amazon currently offers same-day delivery in 14 metro areas and is working on one- and two-hour deliveries for Amazon Prime members. LaserShip, a Virginia based Amazon contractor, has plans to expand quick delivery to 5 new markets.
Reuters reports that fast deliveries are becoming a “battleground” for retailers trying to increase online orders. However, experts warn that quick deliveries can come as a significant cost to these companies.
Chains such as Macy’s have a significant advantage over Amazon, as they have over 900 locations in the United States. Amazon only has 50 distribution centers, and therefore more distance to cover.
Get The Brief. Sign up to receive the top stories you need to know right now.
