Google, Retailers in Talks on Fast-Delivery Service

In a potential strike against Amazon, Google is in talks with major retailers and shippers to create a service that lets consumers shop for goods on the Web and receive orders within a day for a low fee, according to people familiar with the matter.

Google's move into fulfilling delivery of physical goods is motivated largely by Amazon, these people said. Amazon's growth has surged in recent years with a service called Prime that allows people to receive many items they order from the site in a day or two for a $79 annual fee, analysts said. The success of Amazon Prime has encouraged some consumers to search for products directly on Amazon, rather than on Google and has posed an additional threat to traditional retailers whose online offerings -- and shipping times -- often pale in comparison. Numerous retailers have expressed interest in signing on to the Google initiative, the people familiar with the matter said. Google has pitched the project to retailers with whom it struck recent partnerships in other areas, a group that includes Macy's Inc., Gap Inc. and OfficeMax Inc., these people said.