Google is developing a service called Shopping Express, which arranges for local shops to sell products online and have them delivered at the customer's address on the same day.
The move has been identified as the web giant's entry into the territory occupied by the world's largest online retailer Amazon, who also offers same-day deliveries, the Telegraph reports.
A source said that Google will arrange for third parties like couriers to pick up the products from local stores and deliver the items to customers, adding that neither the stores nor Google will directly handles the deliveries.
The source added that the web giant is considering an annual subscription for the service , similar to Amazon Prime, which the UK charges 49 pounds a year for unlimited one-day delivery for many items bought on Amazon's UK website.
The source further said that Google might also charge a small fee for each time a shopper orders through the service.
Google will be developing the service in order to counter the success of Amazon's marketplace business, which has grown rapidly in recent years and has been a big driver of Amazon's revenue and profit growth, the report added.