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Google Unveils New Grocery Delivery Service

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Initially reported by Bloomberg, tech giant Google Inc (GOOG - Free Report) , (GOOGL - Free Report) will partner with retailers such as Whole Foods Market and Costco Wholesale Corp (COST - Free Report) in order to test a new delivery service for fresh food and groceries. The service is expected to begin its trial run in San Francisco later this year.

Grocery delivery will come as an addition to Google Express, a service where customers can already order non-perishable goods and other food products from stores like Target Corp (TGT - Free Report) , Fairway Market , and Costco. It was also announced that Google Express will be expanding to five Midwest states, adding to Northern California, Boston, Manhattan, and Washington D.C.

In an interview with Bloomberg, Google Express’s general manager Brian Elliot said that "for a lot of our merchants that have been successful with this, we’re not representing the whole store today. It’s in our incentive, as well as the merchant’s incentive, for us to help customers get the full store delivered to them."

It’s new grocery program will put Google in direct competition with other well-known delivery services like Instacart and Peapod, as well as Amazon.com Inc (AMZN - Free Report) , and its Prime benefit AmazonFresh.

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