Alphabet‘s subsidiary Google announced recently that it is expanding the services of its delivery platform “Google Express” to fresh groceries including meat, eggs and other perishable products.  While this is Google’s first foray in delivering fresh produce, it is entering a high cost competitive market with players such as Amazon Fresh and Instacart already operating in this space. Google Express, which operates in some U.S. cities, was launched by the company in 2013 to delivery non-perishable items in partnership with retail stores such as Costco and Whole Foods, in what appeared to be an attempt to drive product search traffic away from Amazon to its own search platform. While fresh produce delivery might not be a profitable segment for Google, given the high costs involved in logistics, we believe this segment is crucial for Google to maintain is product search traffic and generate revenues from product advertising.

from Forbes – Tech http://ift.tt/1p40wxQ
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