Does google have anything like this.
No, Google does not provide a service similar to this. (note that the answer here which claims that it does provide it, leads to nowhere).
Any other Free or paid API's that help determine user's location from
his IP
First of all it is hard to speak about reliability of such service. Most of the services rely on ISP to get their data and ISP not always provide reliable data. Moreover because I assume that you basically cares about the location of your user (and not what location his IP belongs), the user can decide to hide his location either through VPN, Tor or other anonymisers.
In some of your comments, I have seen that by reliable you means uptime of the API provider. If so, than I would recommend MaxMind's GeoIP2. First of all, I have seen this site for long time, they are updated pretty often (last update 1-st April 2014), moreover if you are so afraid of downtime - you can download their database and do not rely on them (also they are free).
Another service I actually like is less known and opensource (it partially relies on data from MaxMind). I have used it only a few times, so I can not say about it's uptime, but I really like theirs API. It is so simple, that it is hard to come up with simpler:
http://www.telize.com/geoip/46.19.37.108
or like this
http://www.telize.com/geoip/2a02:2770::21a:4aff:feb3:2ee
will give you
{
"country":"Netherlands",
"dma_code":"0",
"timezone":"Europe\/Amsterdam",
"area_code":"0",
"ip":"46.19.37.108",
"asn":"AS196752",
"continent_code":"EU",
"isp":"Tilaa V.O.F.",
"longitude":5.75,
"latitude":52.5,
"country_code":"NL",
"country_code3":"NLD"
}
I think that these two services are pretty enough to get normal information for your visitors. But one important thing. If you really need to know where you users came from - why not to ask them with html5 geolocation? Here is a nice example, but you can go further (ask them if the location is correct and give them ability to change it). I know that in your case you need only Country/City, but may be other people will need it.
P.S. Nov 2015. Now that telize.com costs money to use, I found another service that is currently free:
https://freegeoip.net/json/45.79.8.237
https://freegeoip.net/json/2600:3c00::f03c:91ff:fe98:c0f5