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Instant Gratification: Online Retail Gaining Same-Day Delivery

Eager to try on the new shoes you just bought online? Well wait no more because same-day delivery companies are expanding their business. Companies like London-based Shutl are removing one of the last advantages of the physical storefronts: instant gratification (i.e. the ability to immediately possess what you purchase).

Though prices are typically lower and selection usually broader when shopping online, the biggest drawback is shipping time, which can still take a few days. Shutl is aiming to destroy this barrier with promises to deliver online purchases within 90 minutes of sale in New York and San Francisco beginning in 2013 by piggybacking on existing messenger services.

Already profitable in the UK – where it serves approximately two-thirds of the population – the company projects a same-day delivery market of up to $26 billion annually in the US by 2016. Competitors such as FedEx and Amazon are already offering similar services, but as yet only serve a few towns and don’t have plans to make the service broadly.

E-commerce has been around for almost 20 years now without any critical evolution in delivery services. This new offering might just shake up the industry a little more, further blurring the line between online retailers and brick and mortar stores.

 

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