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Google Express shopping service closing delivery hubs, seeking to outsource delivery

Google’s Amazon Prime competitor, Google Express, is closing its two delivery hubs and looking instead to outsource its delivery operations, reports Re/code.

Google Express, the search giant’s same-day delivery service, is shutting down its two delivery hubs in San Francisco and Mountain View, Calif., according to sources […]

Rising costs of the drivers and vehicles are likely one rationale. According to multiple sources, Google is trying to curb these by outsourcing its delivery to other on-demand startups and has held initial talks with multiple companies, including Postmates and Flywheel … 

Google relaunched its service last October, with a $95/year membership plan designed to go head-to-head with Amazon Prime, but is reportedly finding it difficult to compete given Amazon’s focus on revenue growth rather than profitability.

The company recently ran a short-term promotion to provide free back-to-school kit for disadvantaged kids when customers spent $50 or more through the service.

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