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Google May Spend As Much As $500 Million To Expand Shopping Express Nationwide

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Google has nationwide ambitions for Google Shopping Express, its subscription-based product delivery service that seeks to rival incumbent online marketplaces like Amazon. According to a Recode report, Google has set aside as much as $500 million to expand the service to cities throughout the United States. 

The expansion has already begun, albeit slowly. Google introduced Shopping Express to markets on the East Coast in May, and most recently to Northern California in early June.

Shopping Express, you may remember, is essentially Google’s answer to Amazon Prime. In contrast to Amazon’s service, Shopping Express relies on local retailers like Toys “R” Us and Whole Foods to fulfill orders rather than warehouses, and contracts couriers to offer same-day delivery.

As we’ve written before, Google’s ultimate goal with is to dissuade shoppers from initiating searches on sites like Amazon and eBay. While Google does take a cut of each Shopping Express transaction and has plans to charge a subscription fee (Google currently charges a $4.99 fee for each additional store couriers have to visit), the search giant’s ultimate goal is to sell more advertising next to products. Google hopes Shopping Express will retain customers by providing incentive to those who search and order directly from its pages.

Google’s gamble may just pay off. eBay halted plans to bring its same-day delivery service, eBay Now, to additional cities. Amazon has been reluctant to grow same-day delivery and its Amazon Prime Fresh grocery delivery, both of which require costly infrastructure. Shopping Express could be a boon for Google if it beats competitors to the punch.

Via: Recode
  • coolsilver

    Why should I care when they decide to launch products ONE DAY before a holiday leading into a weekend? They really expect to get my items to me the same day. Too bad I live in middle of no where to find out.

  • Flahs

    Google should buy some of the old equipment from Webvan.

  • Greg B

    Wish they’d put that money towards expanding Fiber :(

  • antwonw

    Kyle, as someone who lives in California, you need to get your facts straight. While the cities listed in that other article are “technically” in Northern California, they are more commonly referred to as Bay Area (https://www.google.com/?gws_rd=ssl#q=Bay+Area). “Northern California” is usually reserved for anything outside of the Bay Area to the East to the Sierras and then North to Oregon.

    It’s very misleading to put something like that as a Headline or in an article; especially for people living in that area.

    • KyleFromDroidLife

      Stfu, this is my post, go complain somewhere else, you know what I meant

      • antwonw

        Wow Troller. You spent that much time to create a fake Disqus account with an avatar and everything? You need something else to occupy your time.

        • KyleFromDroidLife

          This is my back up account in case Kellex kicks me out

          • antwonw

            Riiiiiight, and I’m David Spade.

  • Maxim∑

    glad Google has set there priorities…

    • nexusplay

      They are doing all sorts of things, they don’t have a shortage of capital.

    • kashtrey

      Why exactly would they need to compete in the retail space? Where’s the growth potential in the physical retail sector? I mean, we’re all fanboys here and I’d love there to be a Google Store to nerd out at, but it really doesn’t offer any new opportunities for Google and just doesn’t make much sense strategically.

  • nexusplay

    I think the potential subscription fee would eliminate the $4.99 per store fee. I hope this rolls out quickly, this is very helpful.

  • veRdiKt

    As a shareholder and loyal customer, I’d like Google to spend that money on Fiber. WTH

    • nexusplay

      I’m sure they are, they don’t only have $500 million laying around.

      • https://www.heartbleedbug.com/ Intellectua1

        Yea as a shareholder you’d think he’d know its more complicated than just spending money to get fiber going in markets across the US.

        • kashtrey

          Hey, anyone with money can be a shareholder in Google, it’s not like you need to pass some kind of test.

    • https://www.heartbleedbug.com/ Intellectua1

      As a shareholder youbshould know that its more to getting fiber up and running than just going places and activating it. Cable companies and ISP’s have contracts with local governments in place that either need to expire first or how ever that works before Google can just barge their way into a market.. Hence the slow rollout.

  • ddevito

    That’s $5 to you and me

  • http://twitter.com/geoff5093 Geoff Johnson

    Just merge Voice with Hangouts already, it’s all we want!

  • Muji Samovar

    Didn’t we see this movie before, when it was called Kozmo?

    I’m sure something has changed in the intervening 13 years, but I can’t figure out what it is.