Skip to main content

Market Overview

Google to Challenge Amazon with Shopping Express?

Share:
Google to Challenge Amazon with Shopping Express?

Google (NASDAQ: GOOG) looks to be set to challenge Amazon (NASDAQ: AMZN) with its “Shopping Express” service. TechCrunch reports that the search giant has partnered with bay area retailers including Target (NYSE: TGT) to offer a home delivery service.

It is believed that Google will charge a yearly subscription fee for the service inline with what Amazon charges for Prime membership. (Prime gives Amazon customers free two-day shipping.)

If Google's tests in the bay area prove successful, it could bring the service to other metro areas.

Of course, whether it could have a meaningful effect on Amazon's business remains to be seen. The service does appear to have a significant advantage over Amazon Prime: it will be same-day, as opposed to two-day.

Yet, at the same time, it may not be able to replace Amazon for many. If Google is only working with a select group of retailers, it won't be able to offer Amazon's extensive catalog of products. In addition, Google likely won't be able to offer such a service in rural areas.

Evidently, traders didn't the view the news as too much of a threat to Amazon; shares are up nearly 1% late on Tuesday.

 

Related Articles (AMZN + GOOG)

View Comments and Join the Discussion!

Posted-In: News Tech Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com