Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) chairman Eric Schmidt recently, in a conference in Berlin, spoke out his worries about the company’s greatest upcoming threat. He clearly declared the firm’s biggest rival in online search is e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN). Schmidt, also, cleared that Bing and Yahoo are not the main competition of the company as many think.
“Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon,” he said in a speech in Berlin.
Schmidt wary of ‘Next Google’
Schmidt noted that the competition in the World Wide Web “isn’t always like-for-like.” Amazon is not basically a search site, but it is used to search anything that people want to buy or to know. This loyalty towards the site will definitely be followed if they shift their focus to come up with a search portal.
Even though Amazon is more focused on the commerce side “but, at their roots, they are answering users’ questions and searches, just as we are,” noted Schmidt.
Amazon is the largest e- retailers and is expected to take some new moves beyond its primary e-commerce business. The largest e-retailers came up with the biggest acquisition in its 20-year history, in August 2014. It acquired a live-streaming gaming network Twitch Interactive for about $970 million. Many believed that Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) also wanted to buy this company.
Even though Google holds around approximately 90% of the online search market, Schmidt is concerned of the “next Google.”
“Someone, somewhere in a garage is gunning for us. I know, because not long ago we were in that garage. Change comes from where you least expect it,” he added.
Google beefing to challenge Amazon
To challenge Amazon, Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) recently expanded its online and delivery services to more U.S. locations. This will help the inter firm to win more customers by making the service most preferable.
Google express Services added Chicago, Boston and Washington D.C, where around 7 million people can enjoy the same day delivery option and almost 12 million people in Northern California can use its next-day service, it said.
Google is expanding in e-commerce and is signing deals with retailers to compete with Amazon. It is basically trying to lower dependence on the web searches that presently account for a major portion of its revenues.
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