Macy’s, the nation’s largest department store, is starting to compete with Amazon (AMZN) 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 (M) 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.