To truly compete with Amazon, they need convenience. Buying packages from mom&pop retailers to ship can yield anywhere from 1 day to 3 week delivery times. Aside from a strong anti-Amazon conviction, where's the motivation for consumers to do that?
To achieve convenience requires either building out a logistics infrastructure on the scale of Amazon, which is clearly a business Google doesn't want to be in, or to approach the problem from the opposite direction. Brick and mortar retail is declining, especially post-pandemic (but also pre); that said, there is already an infrastructure that exists transfers goods to retail locations - it's just spread over 10,000 companies rather than 1. However, if you can write software to better utilize that infrastructure so that you allow consumers to find items that are already physically close to them, and ship using either "last mile" crowdsourcing (and eventually auto-driving vehicles), or at least direct consumers to where the items are so that they can travel less than 30 minutes and get _the_ item they want, then you can come up with a credible anti-Amazon alliance.
Example: I want to buy a sun shade for a pergola. There are probably 10 stores within 20 miles of me that carry them, but I have no idea ahead of time the brands, the price, the color, the size, etc. I could spend an hour calling the stores, and have irritated minimum wage cashiers do inventory searches for me an attempt to answer my questions. Alternately I can go on Amazon, make a purchase, and have it shipped in 2 days from a warehouse 900 miles away from me.