You can be on Entrepreneur’s cover!

Google Gunning for Amazon With Expansion of Same-Day Delivery Google is planning on expanding its Shopping Express nationwide. The company is looking to go head to head with Amazon with product search, while expanding its dominance in online search and advertising.

By Benjamin Kabin

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Google is looking to hit Amazon where it hurts: product search.

The search-engine giant is planning on expanding its Shopping Express nationwide in the near future, reports Re/code.

Similar to Amazon's same-day delivery and Prime service, Google Shopping Express is a same or next-day delivery service that lets users shop local stores online.

A source with knowledge of Google's plans told the tech blog that the company's executive leadership has dedicated up to $500 million for the expansion.

Related: Twitter Testing a Feature That Lets Users Buy Items Without Leaving Twitter

Google did not comment on the specifics of its investment to Re/code or Entrepreneur but the head of Shopping Express, Tom Fallows, said it's no secret that Google wants to see its local-delivery service take off in a big way.

"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," Fallows told Re/code.

Whatever the size of the investment, Google will be pouring resources and capital into marketing Shopping Express in new areas, along with ramping up its delivery-vehicle inventory. The company also plans on hiring more couriers and people to package the products.

Related: All-Knowing Google to Roll Out Geographically-Triggered Shopping Alerts

The service was initially offered on a trial basis in San Francisco and Silicon Valley in 2013 and began in New York City and West Los Angeles this past May. New users do not have to pay the subscription fee for the first six months and usually receive their items in a three to five hour window from a Google-themed Prius, paying $4.99 for each pickup stop. All transactions are processed through Google Wallet, a move that could also put pressure on PayPal. Google has already formed major partnerships with companies like Costco, Whole Foods and Target.

The search giant is happy to take a bite out of the $600 billion grocery market but its main concern is keeping its competitive edge in online advertising. When Internet users search for products on Amazon instead of Google, Google loses that ad revenue and could, overtime, also lose its dominant position in the market.

Related: What Shoppers Still Won't Buy on Amazon (Infographic)

But that seems unlikely, because Google has demonstrated that it understands that the search business is about a lot more than just search. It's about connection. Connecting people to the products, services and other people that they care about -- from beginning to end. Search is just the first step.

Recognizing the potential threat from Amazon and taking it head on is a very forward thinking move.

Benjamin Kabin


Benjamin Kabin is a Brooklyn-based technology journalist who specializes in security, startups, venture capital and social media.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Keep Inspiration in Reach with Nix Color Sensor, Now $60 for One Week Only

Scan any surface and get a detailed report of the color you're looking for.

Business News

Microsoft's New AI Can Make Photographs Sing and Talk — and It Already Has the Mona Lisa Lip-Syncing

The VASA-1 AI model was not trained on the Mona Lisa but could animate it anyway.

Business Solutions

Set Your Team up for Success and Let Them Browse the Internet Faster

With ad blocking, Control D is $35 through April 21.

Science & Technology

AI Will Radically Transform the Workplace — Here's How HR Teams Can Prepare for It

HR intrapreneurs are emerging as key drivers of AI reskilling, thoughtful organizational restructuring and ethical integration, shaping an inclusive future where technology enhances both efficiency and employee development.