Google Inc.
(
GOOG
) recently announced that it has acquired a Canadian start-up
company BufferBox, which provides lockers to receive e-commerce
shipments. The terms of the deal were not disclosed.
Waterloo, Ontario-based BufferBox provides all online users
with temporary lockers from where they can retrieve packages
ordered online. The company offers an automated, self-serve
parcel pick-up station as a locker, which is a more convenient
shipping alternative to home delivery. The company has its
storage lockers in and around Toronto.
To avail the locker service, users will have to sign up to
receive a BufferBox shipping address, which is then provided to
online merchants. On the arrival of the package to one of
BufferBox's self-serve kiosks, the user receives an email that
has a single-use PIN. At the time of collecting the package, the
user needs to provide the PIN to access the locker.
Google is a market leader in online advertising and it has
been exploring various ways to increase its revenue and fight
competition. The company has stepped up its efforts in the
e-commerce space. In June, the company announced that retailers
will now have to pay for space on Google Shopping service in a
bid to strengthen its position against major online retailer
Amazon.com Inc.
(
AMZN
).
The BufferBox deal shows that e-commerce is becoming an
important part of Google's strategy. The acquisition will enable
Google to better compete with the likes of Amazon by giving its
customers a better shopping experience. The service will save
time for customers and also prevent theft or mismanagement of
goods.
Amazon already offers a similar locker facility for deliveries
in certain urban areas, including San Francisco. The company has
storage units for its Locker service at grocery and convenience
stores like 7-Eleven. Recently, it also signed deals with Radio
Shack and Staples to install its lockers at their stores. Though
Google is the leading search engine provider, it still lags
online retail giants Amazon and
eBay Inc.
(
EBAY
) in terms of shopping-related searches.
The Internet search engine provider is on an acquisition
spree. The company continues to pick up smaller companies with
specialized technology to boost its different offerings. Just
last week, the company acquired an online marketing startup
company Incentive Targeting Inc. to enable consumers to buy
premium goods and services at lower prices. In September, Google
acquired start-up VirusTotal to beef up protection for its
Internet services and Nik Software, a 17 year old company, which
specializes in advanced photo editing
Google has done well in the third quarter, with its gross
revenue touching a record $14.10 billion. Revenues, from both
Google-owned and partner sites, continued to grow in double
digits on a year-over-year basis. Historically, Google has always
fared better than
Yahoo Inc
(
YHOO
), which has been struggling to uphold itself and
Microsoft
(
MSFT
), which is yet to gain critical mass.
However, legal entanglements related to competitive matters or
patent infringements remain an overhang. Currently, Google
retains a Zacks Rank #3 (Hold).
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