Macy's, Best Buy Expanding Same-Day Delivery Service
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NEW YORK (CBSMiami/AP) — In an effort to remain competitive with online retail giant Amazon, Macy's and Best Buy are expanding their same-day delivery offers.
Best Buy, the nation's largest consumer electronics chain, says it will expand the service to 27 metropolitan markets from 13 starting next week. That number should reach nearly 40 cities by the holiday shopping season.
In a separate announcement, Macy's Inc. says it will offer same-day delivery in 15 additional markets for a total of 33 areas.
Macy's is working with Menlo Park, California-based startup Deliv, backed by United Parcel Service, while Best Buy is now working with two companies including its original partner Deliv to handle the deliveries. Best Buy declined to name the new partner since it's still finalizing the deal. Macy's fee for the service is $8, while Best Buy has cut its fee to $5.99 per order from $14.99.
"We have always wanted to help our customers get their purchases from Best Buy how and when they want them," said Allison Peterson, president of bestbuy.com, in a company blog post.
Amazon offers members of its $99-a-year Prime program same-day and faster shipping options. It says members in more than 5,000 cities and towns can get their orders the same day or the next, depending on the item and location. Through Prime Now, members in more than 30 major cities can get tens of thousands of items in an hour or two.
With Deliv, customers choose a delivery window directly from the retailer's website or mobile app. The stores charge their own fees; for same-day delivery those range from $5 to $8.
"This now gives the speed and footprint of Amazon Prime Now to pretty much everyone else," said Daphne Carmeli, CEO and founder of Deliv.
Same-day delivery, she said, "has become the new standard. Amazon has set the standard that you can get what you want very quickly."
Carmeli noted that retailers were nervous at first about offering same-day service for fear it would hurt store traffic. But they've realized that they'll lose sales if they don't offer quick delivery.
On Thursday, Deliv began offering same-day service in 1,400 cities and towns in 23 states, up from 700 cities and towns in 15 states. New markets include Tamp, Austin, Texas; Charlotte, North Carolina; and Pittsburgh.
While the bulk of the expansion comes from its 25 existing retail partners, Deliv is also adding several national chains to its roster. It declined to name them yet but said they sell products from home goods to groceries.
Walmart has also jumped into the same-day delivery game, having said it's expanding its grocery delivery service with ride-hailing service Uber to two more markets — Dallas and Orlando, Florida. The world's largest retailer had launched a pilot grocery service with Uber last year in Phoenix and then Tampa, Florida, earlier this year. The delivery charge is $9.95. It's also testing same-day delivery service with Deliv at Sam's Club in Miami.
In May, Deliv unveiled Deliv Fresh, a service for grocers, meal services and e-commerce companies that sell perishable items. The company said then that it would offer same-day, scheduled service for beer, wine, and spirits in June.
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)