Google expands same-day delivery service

Google (NASDAQ: GOOG) has expanded Shopping Express, its same-day delivery service, to Manhattan and West Los Angeles. The announcement comes on the heels of Amazon's (NASDAQ: AMZN) move last week to expand same-day service in Dallas, Los Angeles and San Francisco.

Google Shopping Express offers groceries, office supplies and household goods from about 15 local retailers, including Target (NYSE: TGT), Whole Foods (NASDAQ: WFM), Costco (NASDAQ: COST), Office Depot (NYSE: ODP) and Walgreens (NYSE: WAG). Shoppers are able to compare prices at participating retailers and place items into a single online basket. Users pay shipping costs of $4.95 for each retailer from whom they make a purchase and then select a window of time for delivery. Goods are sent to customers in Google-branded Priuses or via third-party couriers trained by the company.

Previously, the service was only available in the San Francisco Bay Area where it launched as a pilot just over a year ago. In March, Google expanded the test to several hundred Google employees in Santa Monica, and said at the time the service could eventually be offered to the general public.

Google plans to further expand coverage in the coming months to encompass Brooklyn and Queens in New York as well as other locations in Los Angeles.

The same-day delivery space has been heating up in recent years, with Amazon and eBay (NASDAQ: EBAY) quickly growing their services. To make the competition even more intense, Google is waiving its Shopping Express delivery surcharge for the next six months. In comparison, Amazon's same-day delivery costs $8.99 per order. Purchases also include a 99-cent charge per item.

Macy's (NYSE: M) is another retailer that has begun a pilot of same-day service in partnership with eBay, UPS (NYSE: UPS), FedEx (NYSE: FDX) and local delivery companies across the U.S. Home Depot (NYSE: HD) also said it was gearing up for the launch of a same-day delivery unit and would be investing $300 million to get the program up and running.

For more:
-See this Google press release

Related stories:
Instacart adds same-day service to D.C. market
Report: Amazon to expand grocery delivery service to San Francisco 
Home Depot transforms systems for same-day delivery
Google expands same-day delivery test
EBay expands same-day delivery service to Dallas