NEW YORK (TheStreet) -- Google's (GOOG) year-old home delivery service, now called Google Express, is now available for customers in Boston, Chicago and Washington, D.C., as it expands into more markets and looks to compete with Amazon (AMZN) and other same-day delivery services.
Watch the video below for a closer look at Google's expanded shopping express service:The service, which used to be free, now costs $10 a month or $95 a year, following a three-month, no cost trial period. At $95 a year, it undercuts Amazon Prime, though it doesn't come with movies and TV shows, as well as other offerings Amazon has packed into Prime. Non-subscribers can still take advantage for $4.99 each delivery. Google Express will offer free same-day or overnight deliveries for orders of more than $15.
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The move by Google is big, noted Topeka Capital Markets analyst Victor Anthony, but it shouldn't impact Amazon's business too much. "We view this as a direct competitive threat to offerings from Amazon and eBay (EBAY) (eBay Now)," Anthony said in an emailed statement. "Amazon, in particular, is hearing from customers that 2-day shipping is all they really need. Unless that preference changes, unlikely that Google's offering will dent Amazon's sales growth."
Google shares were rising sharply Tuesday, gaining 2.1% to $543.93.
Google is set to announce third-quarter earnings on Thursday, October 16 after the markets close. Analysts polled by Thompson Reuters expect the company to announce revenues of $16.58 billion and earnings of $6.53 per share.