Target to buy Shipt for $550m
Target CEO Brian Cornell (left) and Shipt CEO & founder Bill Smith (right) at Target headquarters.
US retail giant Target has agreed to buy the same-day delivery platform Shipt for $550 million in cash.
In a statement issued yesterday (13 December), Target said: “The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season.
“At launch, Target will offer same-day delivery of groceries, essentials, home, electronics and other products, while expanding the products offered over time. By the end of 2019, same-day delivery will include all major product categories at Target.”
Founded in 2014, Shipt is a membership-based grocery marketplace and same-day delivery platform. The service leverages a network of over 20,000 personal shoppers to fulfill orders from various retailers and deliver within hours in more than 72 markets.
Target said that while Shipt will be a wholly owned Target subsidiary, it will continue to run its business independently. Shipt also plans to expand partnerships with other retailers on same-day, last-mile capabilities.
Bill Smith, Shipt’s founder and CEO, commented: “Partnering with Target and the national scale they provide allows Shipt to further accelerate our growth, bringing our service to more people, in more markets across the country,” said
“We’ll continue growing our marketplace and membership base, working with a variety of retailers to drive scale and efficiencies. We look forward to introducing Target guests to the convenience of our same-day delivery services, with the level of personal attention only Shipt can provide.”
Earlier this year, Target bought the software company Grand Junction, which also manages local and same-day deliveries, and it is already offering same-day delivery in New York City.
