Google Gearing Up For New Inroads

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Jan 13, 2015

Google (GOOG, Financial) known for its innovation is yet again set to run on a new track. Just as the market started looking dull for Google the tech honcho started foraying into a new space which speaks aloud of a winner’s characteristic. Just when everyone thought that Google reached its saturation point and faced with stiff competition from the renewed initiatives of Yahoo (YHOO, Financial) and Facebook (FB, Financial) playing big the only way that Google can go was southwards, the tech honcho is all set to enter a new space in the search business.

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News says that Google is about to enter the US auto insurance sector and a lot of activity is expected in the sector from the tech giant. Probably this new feather in Google’s cap will work towards bettering the affairs at Google’s end and help the tech bigwig send out a message to the world that all is not over at Google’s end. Let us take a closer look at the new dimension of Google which is about to come very soon. As for all the other sectors that Google set foot on even the U.S. auto insurance sector can expect to see a certain surge of activity levels and competition, with the tech giant making way into the sector.

Google and U.S. Auto Insurance

“Google Inc. may be moving into the U.S. auto insurance market with a shopping site for people to compare and buy policies,” an analyst was quoted as saying on Thursday, “as it continues to shift its attention to the automotive industry” added the analyst.

The search giant is planning soon to pilot its new Google Compare auto insurance comparison shopping site, wrote Forrester analyst Ellen Carney in a note. According to Carney, the tech giant has been providing such service in similar framework to insurance providers for the last couple of years.

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Google has been running the show on similar lines in U.K. for users who can compare 125 auto insurance options, and whenever someone subscribes to any of the auto insurance checked on Google either online or over the phone Google charges a service charge from the insurance provider thus providing a virtual platform for the auto insurance companies to showcase their policies and also a one stop shop solution for insurance buyers.

Industry experts are of the opinion that the Mountain View-based company has increasingly been exploring online searches tailored toward specific industries or markets. Google before stepping into the auto insurance segment had also provided such service in the travel sector where users can compare travel destinations and find the cheapest flight fares or hotel offers. From being a universal search engine leader Google is now also foraying into industry specific search options to give the users convenience of zeroing in on their requirements without having to search from its open search engine which generated huge pool of data.

The Road Ahead

Google diversifying from its home territory of Internet search engine and advertising is not new. It has set foot in areas as far-fetched self-drive cars and robotics and has tried to put its technological dominance in almost all walks of human life.

Carney expects the California pilot project for the new service to begin in the first quarter of 2015. Google is already licensed to sell auto insurance in 26 states and is working with a handful of insurers including the likes of Dairyland, MetLife (MET, Financial) and others, she said.

Any Google employee is also licensed to sell insurance on behalf of CoverHound, a San Francisco-based company that pools insurance options from the largest carriers.

Though Google officials remained tight lipped about the new move but the market is already abuzz of news about the search engine giant refining the search options into more industry specific options.

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Investor Take

Just when the mood amongst Google investors and analysts was getting gloomy on apprehensions of whether the tech giant had enough steam left in its business functions and how Google was headed for the end of the road. The tech giant launched the salvo of setting out in a new direction thus answering to the speculations about the company reaching saturation. From here it seems that the road is not yet over for the tech giant as it can create new roads and opportunities for itself and its investors. For now it would be best to wait and watch how Google fares in the new found territory and holding on the positions till then.