Google To Start Testing Grocery Deliveries This Year

Google Inc. will start testing a delivery service for fresh food and groceries in two U.S. cities later this year, stepping up competition with online retailer Amazon.com Inc. and startup Instacart Inc.

The trial will begin in San Francisco and another city, said Brian Elliott, general manager of Google Express, which already delivers merchandise, including dry foods, to customers. Whole Foods Market Inc. and Costco Wholesale Corp. will be among Google’s partners for the new service, he said.

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

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