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.