Google Expands, Renames Same-Day Delivery Service, Adds Membership Fees

Google renamed its same-day shipping service and expanded to three additional cities.

Google renamed its same-day shipping service and expanded to three additional cities.

Less than two years after Google launched same-day shipping with Google Shopping Express, the company is overhauling the service with a new name, an expanded reach and membership fees.

The Wall Street Journal reports that the service, now known as Google Express, not only expanded to cater to consumers in Washington, D.C., Boston and Chicago, but finally unveiled its membership fee structure.

The service, which allows customers to place orders online for products from physical stores, will now charge $10 a month or $95 a year for unlimited same-day or overnight deliveries on orders of $15 or more. Nonmembers will now pay $4.99 per order, or $7.99 if the order is less than $15.

Previously Google Express, which employs a fleet of couriers to collect purchases from local stores and deliver them to consumers within a three- to four-hour window, charged a flat fee of $4.99 per order.

In addition to new cities and member fees, the service announced it would be adding several retailers to its roster including PetSmart, Vitamin Shoppe Industries and Sports Authority.

While more retailers seem to be hopping on the Google Express bandwagon – Barnes & Noble announced a partnership with the company back in August – some early participants have dropped out.

The WSJ reports that American Eagle Outfitters, Office Depot and grocery store chain Lucky have severed their ties with the shopping service.

Additionally, Target and Whole Foods Market aren’t expanding their offerings to the three newly announced cities.

Still, most retailers that sell through Google Express remain optimistic about the service, the WSJ reports.

Officials with Costco say that customers who shop in stores and through Google Express are spending more.

“We’ve seen relatively good results so far. We’re happy to expand with them,” Richard Galanti, CEO of Costco, tells the WSJ. “But we also recognize it’s in the early stages.”

Google Express began last year by shipping from partnered stores in just the San Francisco area. In May the service expanded to parts of New York City and Los Angeles.

Google Adopts Delivery-Service Model, Targets Amazon [The Wall Street Journal]