Google to Challenge Amazon with Shopping Express?

Google

looks to be set to challenge Amazon

with its “Shopping Express” service.

reports that the search giant has partnered with bay area retailers including Target

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.