Vans has been the home delivery pioneer of the last 20 years, with its own home delivery network and a fleet of vans that can deliver a wide range of products from groceries to bedding to baby gear.
The company is now shutting down its new home-delivery service, the Home Delivery Business, in a move that it says will be an example for other companies to follow.
The Home Delivery business was launched in 2013, offering a network of vans with delivery trucks, delivery drivers and a “vans network” that allows customers to order through a network instead of using their phone number and email address to set up an order.
The move was aimed at creating a new way to deliver the same products that were delivered by delivery trucks and delivery drivers, but it has been controversial for its potential impact on the ability of the delivery company to make money.
Home Delivery had been in the works for years, and was expected to be available for new vehicles starting in 2021.
It has been plagued by delays and lawsuits and has never been available to consumers.
The news of the closing comes a day after the company announced it had reached a deal to acquire a $3.5 billion stake in Uber Technologies.
The deal will give the company access to $1.6 billion in capital, and give the merged company control of about $2.5 million in cash.
Vans CEO Richard Bresson said in a statement that he was “deeply saddened” by the news.
“I have seen this company go from being a pioneer in delivering the best products to a company that’s been losing money for many years,” he said.
“It’s a great day for our customers and employees.”
The deal was announced after a three-day meeting of Vans board of directors on Monday, and the company will take the lead in delivering goods and services for consumers, Bressons statement said.
The decision to shut down Home Delivery came as Vans shares were down more than 3% on the New York Stock Exchange on Tuesday.
Vants shares were up about 6% at $1,152.10 in early afternoon trading, before the company released the statement.
Vons is the fourth-largest U.S. home delivery company with about 3,800 employees and has been growing in market share.
It had a net profit of $5.6 million for the year ended June 30, according to FactSet data.
It said it was not clear how the decision to close Home Delivery would affect its future plans.
“We do not have an immediate impact on our other products and services,” the statement said, adding that it planned to announce “a broader set of strategic initiatives” in the future.
Vines home delivery business has grown rapidly in the last three years as the company has grown in the number of vans it has.
VANS started with about 2,500 vans in 2008, and now has about 25,000 vehicles in service, according the company.
Home delivery vans, which can deliver packages weighing up to 30 pounds, were first introduced in 2001.
Customers order a home delivery through a smartphone app or through the Vans website.
The vans deliver a variety of items from groceries, clothes and household items to baby equipment.
Home deliveries have grown faster than most other types of delivery, and are expected to grow even faster as the popularity of smartphones and online shopping has grown.
HomeDelivery has grown by 50% to $7.6-billion annually since it began in 2009, according a recent report from Morgan Stanley.
