Amazon.com (AMZN) Pressured; Google (GOOG) Plans Half-Billion Dollar Investment in Competing Service
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Amazon.com (Nasdaq: AMZN) is ticking lower Monday following word that Google (Nasdaq: GOOG) might be planning a substantial shopping expansion.
Re/code reported earlier today that Google has set aside $500 million for expansion of its Shopping Express segment, which aims to compete with Amazon for e-commerce dollars. Shopping Express allows customers to purchase goods from local retailers and deliver those goods to the customer from the retail location in the same or next day.
While Google didn't comment on the size of the investment, Tom Fallows, head of Google Shopping Express, told Re/code, You can very much expect that we are putting a lot of money into this and we’re excited and willing to sustain that investment over time as this gets going.
Much of the investment has gone toward marketing and build-up of the segments vehicle fleet.
Shares of Amazon are down 1.2 percent.
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