This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Could Google's Driverless Car Revolutionize Online Shopping?

NEW YORK (TheStreet) -- Google (GOOG - Get Report) said Monday that it will be spreading its same day delivery service through Google Shopping Express outside of the San Francisco Bay Area to include Manhattan and West Los Angeles.

Google also announced that the service would remain free for six months as it hashes out a pricing plan that makes sense. Online shopping has always been a low margin business, so why might Google be interested in providing an online shopping platform with free delivery?

There are at least a few factors in play here, but anytime Google does anything the first place to look is in data. The bread and butter of Google?s business revolves around serving well targeted ads to consumers of its services, which are often given away for free. Google Search, Youtube, Gmail, and Google Drive all come to mind as services that are completely free to use. In exchange for the free services Google collects our data and uses the data to sell more valuable advertisements at higher prices. If online shoppers used other express delivery services like the one provided by (AMZN), Google would see valuable consumer data slip through its fingers.

AMZN Chart
AMZN data by YCharts

Speaking of Amazon, they must be mentioned in any discussion of online shopping in the U.S. Amazon's stock has been getting hammered this year. Year to date shares fell from $398.8 to $310.05, or more than 22%. Amazon has now missed the market's earnings expectations as represented by the consensus from 2 quarters in a row with fourth quarter 2013 standing out as a particularly bad quarter. The e-commerce giant pulls in plenty of revenue but frankly its costs are too high. During the holiday quarter Amazon brought in more than $25 billion in sales and last quarter they were just shy of $20 billion. On the bright side though, the pressured profit margins are spurring innovation in delivery technology.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $701.43 0.82%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs