Google Forays into Home Services Market



AdWords Express: Paid app for small businesses

Google (GOOG) marks its entry into the home services market with its new paid app, AdWords Express. Adwords Express is an app for people such as plumbers, locksmiths, house cleaners, and handymen who pay to have their small businesses appear first in search results for related keywords.

Google is attempting to leverage the US home services market, estimated at $800 billion in 2015 compared to $400 billion in 2011, according to an Angie’s List report. Companies such as Amazon (AMZN), Yelp (YELP), Angie’s List (ANGI), and TaskRabbit have already ventured into this space, which has been dominated by Yelp for years.

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Angie’s List

Angie’s List is an online consumer review business that helps its members research, hire, rate, review, and purchase local services for needs like home, healthcare, and automotive services. It generates revenue from both members and service providers.

Home service operators must go through a series of procedures in order to qualify and appear on Google’s search results. Customers can review these service operators and contact them directly via Google.

Amazon launched a similar service, Amazon Home Services, early this year in March. It connects its shoppers to local service providers. Again, this was an attempt to make sure users don’t leave the site.

You can get exposure to Amazon by investing in the Consumer Discretionary Select Sector SPDR ETF (XLY), which has 6.1% exposure to the company.


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