Google is all set to expand its same day delivery service to three new US cities challenging Amazon.com in the battlefield.
Google express service was earlier available only in certain parts of California and New York City and is scheduled to be expanded to Boston, Chicago, and Washington DC.
Starting this week, Google will charge the service for $10 a month, or $95 a year, for unlimited same-day or overnight delivery on orders over $15 while non-members will have to pay $4.99 an order, or $7.99 if the order costs less than $15. Until now, the deliveries had been free as an introduction offer.The service earlier known as Google Shopping Express will now be simply known as Google Express.
Google Executive Chairman Eric Schmidt
Many people think our main competition is Bing or Yahoo. “But, really, our biggest search competitor is Amazon.
Online retailer Amazon’s same-day delivery service, called Prime, charges customers $99 per year, after a free one-year trial.
Sameer Samat, Google’s vice president of shopping, said that the new fees and raising the number of deliveries per trip should help make Google Express profitable over the long term. He declined to comment on whether the service is profitable now.