Grand Junction - Local Delivery Reinvented

What eBay’s Acquisition of Shutl Means



http://www.wired.com/business/2013/10/ebay-buys-shutl/

Recently, eBay announced the acquisition of UK-based Shutl. We think highly of Tom, who’s the CEO, and Steve and Mike here in the US. They are going to be an important part of the puzzle for eBay as they try to get a piece of the $900 billion online-to-offline buying market, which Forrester Research estimates will account for nearly 50% of retail sales by 2013. Without any inside knowledge as to the reasons behind the acquisition, it appears to be an effort by eBay to establish a brand that will allow them to participate in transactions that do not happen inside the eBay marketplace. This strategy has been wildly successful for PayPal on the payment processing side and may translate well to the same-day delivery side when that market takes off.

From a local delivery industry standpoint, the acquisition is great news. When Shutl goes live with expansions in the US, they will use local delivery companies to do deliveries that were formerly handled by UPS or were picked up in the store. eBay and Shutl are at the front end of driving more and more volume to the local delivery industry, forcing the industry to improve quality even further. We expect the other large players trying to get into local commerce to move down a similar path.


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