Google's Rumored Target and Walmart Alliance Could Scare the Prime Out of Amazon

Google GOOG is reportedly working on a new shopping service to take on Amazon Prime AMZN. According to TechCrunch, the new service (which is being referred to as "Google Shopping Express") will retail $64 or $69 a year, making it considerably cheaper than Amazon Prime, which sells for $79.99 a year. It will also provide subscribers with a same-day delivery option from Target TGT, Walmart WMT, Walgreens WAG and Safeway SWY. There will likely be an additional charge for those who choose same-day delivery, but consumers may not care during the busy holiday shopping season. When Little Timmy's stocking is unstuffed and Santa is scheduled to arrive in 48 hours, parents may be willing to pay whatever Google charges. It is not yet clear what other perks, if any, Google may offer with the service. Amazon has used its growing video collection to lure potential customers to Prime, knowing that subscribers will not simply watch the old TV shows and dated movies -- they will shop more frequently. The retailer has also used the Kindle Owners' Lending Library to lure subscribers. Google could compete with Amazon by offering a few freebies or extras of its own, such as paid YouTube content. While YouTube videos are currently free, the company is expected to offer a paid subscription service this spring. It is not yet clear what the subscription will include, but rumors suggest that Google aims to offer original programming that is similar to Netflix NFLX. The search engine giant may also offer discounts on its Groupon GRPN clone, Google Offers. It is not yet known when Google will launch the Express Shopping service, but it isn't likely to happen just yet. Expect the company to save its unveiling for the prime shopping season, AKA November 2013. Follow me @LouisBedigianBZ