Google Targets Amazon With Free Same-Day Delivery in NY & LA
- "Google just threw down the gauntlet in the same-day delivery wars, launching its Google Shopping Express service in Manhattan and parts of Los Angeles and offering free same-day delivery for the first six months."
- "The service, previously available only in the San Francisco Bay area, delivers groceries and other goods from the likes of Costco, Target and Walgreens, and usually costs $4.99 per store visited."
Takeaway From Hedgeye’s Alec Richards:
Partnering with Google and Ebay is the best alternative for retailers when trying to fend off Amazon, but scaling same day in a market as dense as New York won't be easy. Orders overwhelmed Google's network yesterday and the company was forced to refuse service after noon. Still a lot of kinks need to be ironed out, but a step in the right direction for brick and mortar.
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Editor's Note: This is a complimentary research excerpt from Hedgeye Retail analyst Alec Richards. Follow Retail sector head Brian McGough on Twitter @HedgeyeRetail.