Same day delivery options, pricing and retail competition

An article in the New York Times (December 28,2012) describes same day delivery options offered by stores to compete with Amazon. For $ 5, Ebay Now offers delivery options to coffee shops, homes etc same day. Amazon offers same day or next day delivery for $10 in five cities. Net-a-Porter offers delivery same day for $25 for its clothing. Task Rabbit offers to pick up from stores in the city and drop off for $10. Is this a trend that will enable local stores to compete effectively with e-commerce sites ? Will the US Postal service’s plans to offer same day delivery enable them to compete at these price points ? How much would local volumes need to grow to make such services a sustainable alternative?

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About aviyer2010

Professor
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