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Google Supposedly Testing Same-Day Delivery Service

By - Source: New York Times | B 7 comments

Google is testing a same-day delivery service in San Francisco.

The New York Times reports that Google is currently testing a same-day delivery service in San Francisco. The company is one of many working to offer same-day delivery including Amazon, eBay, and Walmart, seemingly trying to drive out local retailers who don't have the resources to compete.

According to the report, employees and friends affiliated with the company can reportedly purchase a product using their phone or computer, and have it delivered directly to their homes "in a matter of hours". Two unnamed sources briefed on the service told the paper that at least one national apparel chain is involved.

The paper's sources also claim that Google doesn't intend to manage its own warehouses. Instead, the search engine giant is teaming up with retailers and delivery companies to provide the actual groundwork. Several San Francisco retailers – some of which are national chains – are already participating in Google's program, they said.

Google is reportedly moving to a same-day service to prevent Amazon from stealing its business. As it stands now, retail ads are a huge portion of Google's business, but consumers are swarming to Amazon to shop for products, bypassing those money-generating ads. What also doesn't help is that Amazon offers a yearly-subscription service that provides free two-day shipping – just imagine that becoming same-day delivery.

The New York Times speculates that the move also bridges the digital and physical sectors so that Google can better understand and profit from mobile ads. When consumers use their PC to shop, Google and advertisers know when a user clicks on an ad, and then visits or purchases a product on another website. On the mobile front, Google loses that customer when they look up a product on their phone, and then walk into a physical retailer to purchase the item.

But by offering same-day delivery using a smartphone, Google can keep track of the user while pocketing the money generated from the mobile ads. A Google spokesman, Nate Tyler, declined to comment, the paper said.

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  • 0 Hide
    wolley74 , October 27, 2012 7:14 AM
    While impressive if it can be done on the scale they want, the only way you could get me to use it is when I either CANNOT get it locally and need it the same day, or if it is cheaper then gas to go to a store to get the same item in the same amount of time, I see it being possible, but it wont be cheap for the consumer
  • 9 Hide
    amigafan , October 27, 2012 8:40 AM
    We ship it before you can say "Google"! In fact, we will teleport the goods to you!
  • 7 Hide
    freggo , October 27, 2012 10:16 AM
    Wolley74While impressive if it can be done on the scale they want, the only way you could get me to use it is when I either CANNOT get it locally and need it the same day, or if it is cheaper then gas to go to a store to get the same item in the same amount of time, I see it being possible, but it wont be cheap for the consumer


    Don't forget counting the value of the time it takes to go to the shop.
    Example, I can spend an hour+ to drive to the local Supermarket for some shopping, or can place the order online and have it delivered. If you make more in an hour (and have your job schedule full) than they charge for delivery it makes a lot of sense to go for the delivery.
    Also cuts back on buying impulse items at the last moment before check out :) 

  • Display all 7 comments.
  • 3 Hide
    alidan , October 27, 2012 10:29 AM
    freggoDon't forget counting the value of the time it takes to go to the shop.Example, I can spend an hour+ to drive to the local Supermarket for some shopping, or can place the order online and have it delivered. If you make more in an hour (and have your job schedule full) than they charge for delivery it makes a lot of sense to go for the delivery.Also cuts back on buying impulse items at the last moment before check out


    you also have to take into account gas. major dilivery place could inverst in more fuel efficiant means of transport, pick up, and delivery.

    imagine every hour a new car comes around and delievers 10-20 people orders, it could be far cheaper than any of you are thinking.
  • 1 Hide
    eternalkp , October 27, 2012 5:37 PM
    man, google is on the role
    ocean map. fiber. now same day at delivery
    meanwhile at apple...
  • 1 Hide
    jhansonxi , October 27, 2012 6:33 PM
    Google is just following an ongoing trend. Many retailers have seen an increase of people checking out items in their stores, taking a picture or two, then leave without buying anything. The theory is that they are just using the retailer as a showroom then buying the item online cheaper. This happens with computers and consumer electronics also. Computer City, CompUSA, Circuit City are gone. Best Buy is not doing well (Win8 isn't going to save them). How long before Micro Center meets the same fate?
  • 0 Hide
    alidan , October 28, 2012 6:32 AM
    jhansonxiGoogle is just following an ongoing trend. Many retailers have seen an increase of people checking out items in their stores, taking a picture or two, then leave without buying anything. The theory is that they are just using the retailer as a showroom then buying the item online cheaper. This happens with computers and consumer electronics also. Computer City, CompUSA, Circuit City are gone. Best Buy is not doing well (Win8 isn't going to save them). How long before Micro Center meets the same fate?


    because they cant compete...
    best buy trys to sell a 100$ hdmi cable with new tvs... tell me that isnt some bs right there.
    you know, if i had a big enough store, like say i was amazon, i would open up a showroom store.

    we would sell some snack food, water and drink, but everything in the store would be showroom stuff, nothing to sell these people, just a place they can go and check out the deals, perhaps scan a code and find it online through amazon. everything would be properly setup, and i would have keyboard samples, mouse samples so on so forth, no working models, just samples, so you can get the look at feel.

    and if you went and decided to get speakers or something, you could look at show room models, but if you were a serious buyer, you could select specific models, and combinations of amps. 100$ non refundable down payment, you would get a sound proof room, and 10-25$ service charge per setup, and you can sit there and watch a full movie, granted this would be 2 people only, possible exception for a 3rd person if its a husband wife and the person they trust who knows tech. if you are buying high end speakers, you want to hear them first.

    -------------------

    now back on the topic of of same day delivery,
    nearest grocery store to us is about 10 miles away, and you pass close to 100 peoples homes going there.

    imagine a dilivery truck, each delivery compartment holds 4 bags, and 2 12 packs of soda and you are charged per compartment.

    shoping takes 1 hour for us, knowing where everything is.
    imagine this, they get your crap together in 10-15 minutes, bag it, and charge it, and ship it
    its delivered within 1-2 hours of ordering (depending on how backed up they are) along with 20 other peoples orders, and in the end it costs 2-5$ to ship same day about each compartment is sold at cost to keep people employed, food is charged at profit.

    that is at least 1 hour of time you have back that you never wanted to spend in the first place, and the food is delivered to your home.

    hell its possible that they could deliver snack food at 25-50 cents because how many people have a craving for something like doritos or funouns every now and than, and if you didn't have to drive you would SO go to town on a bag, but the 5-10$ in gas is so not worth it for one bag.
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