Google Inc (GOOGL)’s Aggressive Play in Ecommerce, Ready to Expand Same-Day Delivery Service in U.S.

Google (GOOG)

One the largest tech companies with its involvement in pretty much every area of business, Google Inc (NASDAQ:GOOGL) is all set to expand its same-day delivery services in the United States. Google’s “Google Express” competes directly with its ecommerce rival Amazon.com, Inc. (NASDAQ:AMZN)’s “Amazon Prime” delivery service.

At the initial stage, Google Express was introduced in some parts of New York and California but the latest expansion plans would extend the service to Chicago, Washington D.C., and Boston, as per Google’s update. The improved Google Express service would cost $95 annually or $10 per month.

Google (GOOG)

Eric Schmidt, executive chairman of Google Inc (NASDAQ:GOOGL), said that Amazon is their “biggest search competitor” at a public speed he gave in Berlin. He further added, “Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon.” According to him, internet users prefer visiting the ecommerce platform directly instead of searching it online.

Mr. Schmidt further added, “People don’t think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon. They are obviously more focused on the commerce side of the equation, but, at their roots, they are answering users’ questions and searches, just as we are.”

As of now, Amazon.com, Inc. (NASDAQ:AMZN) offers Amazon Prime with 2-day shipping model coupled with ad-free access to the site and millions of songs every month. Amazon Prime is priced at $99 annually.

Google Inc (NASDAQ:GOOGL) has put significant amount of efforts into Google Express considering the fact that the company has collaborated with over 35 retailers to make it huge. Some of its primary partners include Costco Wholesale Corporation (NASDAQ:COST) and Staples, Inc. (NASDAQ:SPLS). These retailers are a huge part of the equation considering that they order their local branches to fulfill the online order placed by a customer.

This article has been written by Prakash Pandey.

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