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The San Francisco Chronicle reports that Google will launch "same-day grocery service in San Francisco and Los Angeles as trial markets for their Google Express service, which already provides delivery of some household essentials."

In diving into the grocery business, Google will be partnering with Costco, Smart & Final and Whole Foods, giving them an alternative to compete more effectively with Amazon Prime Fresh, as well as with companies such as Instacart; ironically, Instacart already delivers Costco and Whole Foods products.

Google Express will require a $10 monthly membership fee, plus a $3 per-order fee and a $35 minimum order.
KC's View:
This is inevitable ... once Google invested in a shopping business, it only made sense for it to expand aggressively into groceries. I'm not sure if they'll be able to lure me away from Amazon, but that'll depend on how the service is marketed; the fees strike me as a little prohibitive, but time will tell.

I'm mostly fascinated by the decision by Whole Foods, which has been a big Instacart supporter, to also engage with Google on this. I wonder if this points to longer-term problems for Instacart, a service with which I've never been enamored.

And finally, this points to the necessity for every business to figure the e-commerce segment out. There's no real choice anymore.