Google Inc (NASDAQ:GOOG) announced that Google X, the organization’s secret lab has been working on drone deliveries and the drone has been christened ‘Wing’. At the same time, Amazon.com, Inc. (NASDAQ:AMZN) has been putting effort in its version of drone delivery. It appears that next year Amazon will have a drone service that will let recipients receive their packages within 30 minutes after placing orders, assuming they are located in a delivery zone.
Google, which has its Google Shopping Express, same-day delivery service is competing with Amazon in the drone service domain. Another entity experimenting with drone services is shipping organization DHL.
Google declared the launch of a new entity “Alphabet” an umbrella organization under which Google and its different unrelated businesses each with a separate chief executive will come be established. The restructuring is done with the purpose of each business be more focused and operate with greater efficiency. The restructuring announcement led to a spike of over 5% in after-hours trading.
As part of the reshuffling, Google will become an Alphabet subsidiary and accommodate the organization’s advertising enterprises such as Android, YouTube, and Google. Sundar Pichai will take over as new CEO of Google. Google founders Sergey Brin and Larry Page will helm Alphabet as president and CEO respectively.
The search giant has faced pressure as its founders have leveraged its huge success to invest in other ventures such as state-of-the-art medical research, smart home appliances, self-driving cars and others. One of the major reasons behind the restructuring was to give investors more insight on how the giant company spends its money.
All Google shares will transit into equivalent shares of Alphabet which will still trade under the stock ticker’s GOOGL as well as GOOG. Also, Eric Schmidt will get the position of Alphabet’s executive chairman. The CFO of Alphabet will be Ruth Porat. David C. Drummond will assume the position of the new organization’s secretary and chief legal officer. These developments regarding Google have elicited mixed reactions from the tech industry as well as the public.
Sources: theguardian, ibtimes