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If Google Bought a Retailer

One of the missing pieces of Google Home’s offering is the ability to make orders for goods. This is missing both for Google as well as the consumer who has the device. It’s something that makes Alexa Voice Service and Amazon Echo products viable from a business model perspective.

Voice ordering is a time savings for the user but the margin on these orders can push a service into the black very quickly. The problem is that an affiliate fee just isn’t large enough to cover the costs of the service (servers, promotion, development, etc).

What if Google were to buy, merge, or partner with a major retailer who does have good online ordering capability for regularly day-to-day products? Google’s market cap is about $500B. What if it merged with Walmart, a $212B company? What would that look like?

Other contenders are Alibaba ($234B), Costco ($66B), or Rakuten ($15B). Imagine a free Costco membership or 5% discount on Walmart orders with a Google Home product?

From the retailer’s perspective, this potentially could bring in millions of new customers and billions in additional sales, as well as reduce the cost of their advertising spend they already pump to Google.

Crazier things have happened.

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