Google to partner with Whole Foods and Costco for grocery delivery services

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A Google logo is seen at the entrance to the company's offices in Toronto in this file photo taken September 5, 2013. Google Inc said October 17, 2013 that consolidated revenue rose to $14.89 billion in the third quarter from $13.3 billion in the year-ago period. REUTERS/Chris Helgren/Files Reuters

Technology giant Google has tied up with Whole Foods Market Inc. and Costco Wholesale Corp for a delivery service in San Francisco and other still unspecified areas and cities. The partnership will reportedly test a same-day delivery for fresh foods, with the goal of tapping into the industry.

It is all set to enter customers’ kitchens with groceries as it maps plans for an e-retailing style venture, Google announced on Tuesday. The test will be mobilized by Google Express, the search giant company’s existing wing for merchandise delivery to customers.

“If I’ve got to pay someone to drive the product from point A to point B, the bigger the basket size, the more revenue I’ve got to offset that cost,” said Brian Elliott, general manager of Google Express as quoted by Bloomberg .

In April, a report showed the e-commerce giant was the lowest-cost among rivals in New York. Online groceries are a $10.9 billion industry in the U.S., and the market is expected to grow 9.6 percent annually through 2019, reported by Market Research firm IbisWorld.

The report stated  Google as being the lowest-cost among the competition in New York. Online groceries are a $10.9 billion industry in the U.S., and the market is projected to grow by 9.6 percent per year through 2019, accounted by Tech Times .

The fresh-food trial of vegetables and fruits, is on top of the usual Google Express’ merchandise deliveries. This gives customers more options in purchases thereby improving profit and sales to the e-commerce company.

This move will put Google in stiff competition with Amazon, which has just rolled out in its food delivery service in Seattle this week. Amazon customers will be able to order food from dozens of restaurants in the Seattle area using the company’s Prime Now app—with the delivery service coming at no extra charge. Instacart, Good Eggs, and all other small startup delivery companies will likewise be its competition.

In its announcement, the company also voiced of its intention to expand its merchandise delivery to five more states in the Midwest: Indiana, Iowa, Michigan, Ohio and Wisconsin. To date, Google Express services Chicago, as well as a handful of other major US locales, including Los Angeles, Washington, DC, and Boston.

Google To Expand Its Fresh Food Delivery (Credit: YouTube/NewsyTech)

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