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EcommerceBytes-NewsFlash, Number 760 - May 13, 2004 - ISSN 1539-5065     Previous |
eBay Items 'Hitch a Ride' on Two New Web Sites
By Ina Steiner
EcommerceBytes.com
May 13, 2004




Two new sites promise to serve a need that all auction buyers and sellers have: getting their auction items delivered. Canadian-based Hitchpack and Texas-based uShip have created sites where people can "hitch a ride" for their purchases, connecting people with shipping needs to people who are already making the trip.

The two sites take different approaches with fees. On Hitchpack, the sender pays a listing fee, while on uShip, there are no listing fees, and the driver pays a commission of his compensation.

"I see the cars along any major highway corridor as a conveyor belt," said Yakim Almaleh, president of Hitchpack. "The Hitchpack concept won’t increase the number of cars on this conveyor belt - it will just make more efficient use of them." Two Kingston-based entrepreneurs and a recent Queen’s University MBA graduate started Hitchpack.com.

People who are sending an item can post a listing on Hitchpack for $1.99 to look for drivers to deliver their item to recipients. The duration of a posting can be up to 2 weeks, and a 1-week renewal costs $1.99.

uShip, meanwhile, charges no listing or transaction fees for shippers. Drivers pay a transaction fee when a match is completed and approved by both parties. The transaction fee is 7.9% of the driver's compensation (the shipper's offer price) with a minimum fee of $1.

Mickey Millsap, executive vice-president of uShip, calls his site a "peer-to-peer shipping marketplace." He and two fellow MBA students founded the site, which launched March 1. They are self-funded, but will seek A-round funding once they graduate at the end of the month.

uShip requires all members to register with a credit card. Recognizing that some people won't be comfortable with a college student conveying their goods cross country, Millsap said senders can search specifically for licensed bonded drivers.

Both services use a feedback method for members to rate their transaction partners.

http://www.hitchpack.com

http://www.uship.com

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  • eBay Items 'Hitch a Ride' on Two New Web Sites - May 13, 2004, Issue #760
  • Shipping Auction Site Launches Categories, Increases Referral Rates - June 17, 2004, Issue #784
  • uShip Announces New Ways to Search - June 23, 2004, Issue #790
  • uShip Shipping Marketplace Announces 'Shipper Protection Program' - October 11, 2004, Issue #866
  • uShip to Pay Members $10 to Ship Items - March 31, 2005, Issue #986
  • eBay's VC Benchmark Capital Invests in uShip, Kagle Joins Board - June 24, 2005, Issue #1046


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