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Reuters reports that eBay is expanding its eBay Now same-day delivery service "as the company battles with rival Amazon.com Inc for dominance of the emerging online local commerce market."

eBay Now has been delivering products from retailers such as Walgreen, Best Buy and Target to communities such as Manhattan, San Jose and San Francisco since last year, and now will expand to Brooklyn and Queens, New York, the Bay Area peninsula between San Francisco and San Jose, and Dallas.

According to the story, "eBay's expansion comes as Amazon builds more warehouses closer to customers, which will help the world's largest Internet retailer offer faster delivery.

"eBay, which does not own inventory and mostly avoids running warehouses, is partnering with retailers to create a network of existing physical stores that will, in effect, operate as mini storage and distribution hubs for online purchases."
KC's View:
It isn't just eBay testing the waters. Google has its test of the Google Shopping Express concept in Northern California, and Instacart, which also started there, also is rolling out.

We're going to see a lot of players trying to compete with Amazon, trying to offer alternatives to the company that clearly has the competitive advantage right now.