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Google Express Shutting Two California Delivery Hubs


Google Express Shutting Two California Delivery Hubs Re code

Source: http://recode.net/2015/08/19/google-expr...

Google Express, the search giant’s same-day delivery service, is shutting down its two delivery hubs in San Francisco and Mountain View, Calif., according to sources.

The move is part of a broader push within Google to revamp the service, which launched in March 2013, after it failed to make a serious dent in a market crowded with Amazon and a myriad of on-demand startups.

Express was hatched out of Google’s commerce plans, formed, in part, to hedge against Amazon’s growing foray into product searches. It is now in seven major cities. In most of them, Google delivers goods from retail and shipping partners. When the service arrived in the Bay Area, Google tried out a hub model. Customers would order from Google’s retail partners, and drivers delivered the goods from the two locations on the same day or overnight.

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According to multiple sources, Google is trying to curb costs by outsourcing its delivery to other on-demand startups and has held initial talks with multiple companies, including Postmates and Flywheel.

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