Uber can help small e-retailers compete with the Amazon Prime service by offering an alternative method of same-day delivery and cheaper delivery options for same-day orders. By charging lower fees for same-day deliveries compared to Amazon Prime, Uber hopes to increase profits for small businesses and increase growth.
Amazon.com allows companies to sell its products through the service, with one option allowing each business to manage its own shipping and logistics. Businesses willing to pay additional fees are able to list the products with Prime shipping, which offers guaranteed two-day delivery in most areas, and same-day service in select major cities. Though this service allows businesses to make their products more attractive to customers by reducing the amount of time they must wait for products, it decreases the potential revenue to sellers through fees and creates a dependency on Amazon.com that undermines specific brand loyalty.
Uber operates a partnership with the online retail system solution Shopify that seeks to offer the same expedited shipping service for businesses that maintain their own online stores using Shopify. Uber contracts its drivers, which typically offer passenger rides similar to that of a taxi service, to retrieve the products from the businesses and deliver them to customers within the same city. This allows the company to save money on Amazon Prime fees, focus on growing local markets, and track purchases through their own websites.