Dive Brief:

• Retailers including Amazon, Kohl’s, Apple, Macy’s and Etsy have launched or expanded same-day delivery services in time for the holidays.

• Most of the services are clustered in New York City, which has a lot of people (aka customers) packed into a relatively small space, and a well functioning public transportation system to make things easier. But Kohl's, Macy's, and Amazon are also delivering same-day and faster in several cities.

• Prices for same-day delivery vary widely, with Amazon beating most, especially for its Prime members, and offers the service in more cities than many of its rivals do.

Dive Insight:

Amazon in many ways continues to drive same-day and and even more rushed delivery (within an hour or two). With its widespread Prime membership base and the nimble ways it uses data, the e-retail giant could end up leapfrogging over its competition even where it's a latecomer.

But retailers like Apple, Etsy, and Kohl’s have announced super-fast same-day delivery options, too. Apple and Etsy are charging a premium for it, at $19, for delivery in most Manhattan neighborhoods.

At a time when margins are already thin thanks to holiday sale prices, some retailers could be trading sales and/or customer loyalty for making money.

“In order to deliver on your promise of on-demand, you have to have enough resources roaming the city to meet market demand,” Marc Kuo wrote last year in a blog post titled “Why the Uber-for-X Wave Should Stop: The Case Against Everything on Demand.” “At the same time, you better have enough volume to keep everyone busy. Otherwise, you’re probably bleeding cash.” 

The holidays could be a test for rushed same-day delivery. But is it one that retailers really want to pass? In addition to the expense, is it worth giving shoppers another way to stay out of stores? And will customers balk at the added expense, precluding any ability to make money on the service? 

“[I]f you don’t pay close attention to how these companies charge for their services, your money could disappear like magic,” Brian X. Chen, recently wrote in the New York Times “Tech Fix” blog. “I discovered this firsthand when I tested four popular instant delivery apps over the last week to take a closer look at their fee structures.” 

That kind of scrutiny could lead to some New Year regret once the holiday frenzy has cleared.