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EBay Kills Off On-Demand Delivery Service

EBay is bowing out of the same-day delivery battle that’s been raging between brick-and-mortar retailers and e-commerce behemoths.

One week after its split from PayPal, the online auction site said that it’s simplifying buying and selling for its customers by shutting down eBay Now, the on-demand delivery service it started three years ago that’s available in San Francisco, New York City, Chicago and Dallas, and ditching a number of under-performing mobile apps.

“While we saw encouraging results with the eBay Now service, we always intended it as a pilot, and we are now exploring delivery and pick-up/drop-off programs that are relevant to many more of our 25 million sellers, and that cover a wider variety of inventory that consumers tell us they want,” the company said in a statement, noting that it will continue to pilot scheduled deliveries in the U.K.

Much fanfare surrounded the service’s introduction in 2012, but it struggled to secure traction in a space where the likes of Google and Amazon were also angling for a piece of the on-demand delivery pie. Late last year the company quietly got rid of the eBay Now mobile app and slowed the service’s expansion strategy.

In addition, eBay is shutting down its Valet and Fashion apps in the coming weeks and Motors will be decommissioned later this year. The news comes as the company continues its efforts to slim down and focus on its core digital marketplace. Two weeks ago it sold eBay Enterprise—the arm of its business that helped handle e-commerce and logistics for the likes of Ikea and Timberland—for $925 million.

“Our objective is simple: give our customers the easiest way to experience the best that eBay has to offer,” the statement said.