Dive Brief:
- Macy’s will bring same-day delivery service to more markets this summer by partnering with Deliv, a startup that taps contract drivers to pick up orders made online for local delivery.
- With 886 stores in the United States available to source delivery as of May 2, Macy’s same-day service is well-positioned to “out-Amazon” Amazon, which operates approximately 50 distribution centers.
- The department store chain already offers same-delivery in Houston, San Francisco, San Jose, Seattle, Washington D.C., Chicago, Los Angeles, and New Jersey. The retailer couldn't confirm which new markets will be added.
Dive Insight:
Macy’s is going head-to-head with Amazon in the same-day delivery business, with plans to expand the service to more U.S. markets by partnering with Deliv, a service that functions like Uber for merchandise orders. Macy’s currently offers same-day delivery in eight urban markets, compared to Amazon’s 14.
The so-called last mile has become a battleground among e-commerce and traditional retailers, with Amazon, Nordstrom, and others competing to be the first to customers’ front doors. With more than 800 stores that can serve as merchandise fulfillment centers, Macy’s has a surprising edge in over Amazon, which operates about 50 distribution facilities nationwide.
However, the faster the delivery, the more costly it becomes—and many consumers are willing to wait for their packages to save a few dollars. Macy’s now charges customers $5 for a same-day delivery, but the true cost may be much higher.
