Google is reportedly working on a delivery service that would bring it into competition with Amazon Prime.
The new service would allow people to order items from local retailers and have them delivered within the day, according to the New York Times.
According to sources close to the project, Google has no intentions to open shops and warehouses in order to become a retailer itself, but has spoken to a number of retailers and couriers about the possibility of becoming partners.
Google hopes to sell advertising to merchants, although it is not yet clear whether Google will take a cut of revenues made from sales.
The service could eventually compete with the Amazon Prime delivery service which offers UK users unlimited one day delivery for £49 per year. This means that many shoppers search for items via Amazon directly, rather than searching for them in Google.
In April, Google launched Google Offers, a competitor to Groupon, which allowed people in Portland, Oregon to search for discounts for local restaurants, bars and other establishments. Its commerce portfolio has also been strengthened by Google Wallet, a service which allows users to pay for goods using near-field communication (NFC) technology.
However it is not the only technology company diversifying. Amazon’s Kindle Fire tablet has encroached on territory recently occupied by Google, whose Andoid powered devices compete with the Apple iPad.
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