Google (NASDAQ:GOOG) is ramping up its Shopping Express program this year to compete with Amazon (NASDAQ:AMZN).
In the past, Google has experimented with letting consumers buy goods using Google Wallet and Google Checkout. But in 2013, the company launched Google Express, a service that allows shoppers to buy merchandise from local retailers that would be delivered to their home. Google tested the program in San Francisco and then expanded business to New York and Los Angeles.
"You can very much expect that we are putting a lot of money into this and we're excited and willing to sustain that investment over time as this gets going," Tom Fallows, head of Google Shopping Express told Re/code.
Google wants to grab its piece of the $600 billion grocery market, while there is also money to be had in the direct response digital ads that Google expects U.S. companies and brands to invest in throughout 2014.
"We think that helping close the loop on locally available items is a really important part of making sure Google is the best place to shop," added Fallows.
Thus far, Google's local retail partners include big names such as Target, Costco, Toys R Us and Whole Foods. Fallows foresees in the near future same-day delivery and a flat-fee membership for Google Express, similar to Amazon Prime.
But Google has its work cut out. Amazon Fresh recently added same-day delivery and later cut-off times to its program.
-See this Re/code article
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