Google introduces delivery-service model
Google, which has called Amazon as its biggest service rival in its recent statement has adopted the delivery service model and is expanding its delivery service and will charge a membership fee which will take its battle with Amazon to the next level.
Google will charge up to $10 per month or $95 per year for unlimited same day or overnight delivery for orders exceeding $15. Non-members will have to pay $4.99 for each delivery and $7.99 for orders that cost less than $15. Customers who have been enjoying free deliveries will have to start paying starting this week.
The service which was called Google Shopping Express is now renamed as Google Express and customers can only place orders online from brick and mortar stores run by approved retailers such as Costco Wholesale Corp, Walgreen Co, and Staples Inc. The service is also extended to Washington D.C, Chicago and Boston beginning today. The service was available only to the residents of the San Francisco bay area, Los Angeles and some parts of New York.
The list of newly added retailers includes Sports Authority Inc. and Vitamin Shoppe Industries Inc. the company has also started testing delivery of fresh food in the San Francisco market. Amazon, which attracts a lot of traffic regarding online shopping is Google’s biggest rival and it increased since Amazon introduced faster delivery options and extended its service horizons earlier this year and the competition intensified after the introduction of grocery business named AmazonFresh.
The unlimited two-day delivery program run by Amazon costs $99 a year and its Prime Fresh grocery delivery service charges memers $299 a year while the orders should be for a minimum of $35 per order.
Google Executive Chairman Eric Schmidt said, “Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon.”