Is Google Launching An Amazon Prime Competitor?By: Zach Walton - March 5, 2013
Full disclosure: I love Amazon Prime, and I’ve been a faithful subscriber for the past three years. That being said, there’s definitely some room for competition. eBay already provides some in the form of eBay Now, but Google may be throwing its hat into the ring soon.
TechCrunch reports that Google may be launching a new service called “Google Shopping Express” in the near future. The service would help Google capitalize on its Google Shopping service to provide fast shipping to customers shopping through said service.
It’s noted that Google’s recent acquisitions of BufferBox and Channel Intelligence point to the company starting up something like the rumored Shopping Express service. The former would be useful for its delivery locker service, and the latter said that it’s “focused on making it easy for consumers to find and buy products online.”
Google could pose a major threat to other online shopping services if it’s able to get the rumored service off the ground. It could expand BufferBox to more cities to make instant delivery more accessible, and cheaper, to more consumers than the competition. It could also rope in a bunch of retail partners so that it has the same wide selection consumers can find on Amazon or eBay.
A major obstacle, however, will be the price. Same-day delivery isn’t exactly cheap so Google needs to have a good pricing scheme in place to convince shoppers to go with them instead. TechCrunch’s sources say that the service would only cost $64 to $69 a year. If it could pull off same-day delivery all year at those prices, Amazon Prime may not look so hot in comparison anymore.