Shipt will boost the retailer’s ability to same-day delivery services at nearly half its stores by early 2018
By NACS Online
Target Corp. is acquiring Shipt Inc., an online same-day delivery platform, for $550 million. Target will leverage its network of stores and Shipt’s proprietary technology platform to bring same-day delivery to customers across the United States. The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to half of Target stores by early 2018.
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.
“With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country,” said John Mulligan, executive vice president and chief operating officer for Target.
Founded in 2014 and located in Birmingham, Alabama, Shipt is a rapidly growing membership-based grocery marketplace and same-day delivery platform. Through Shipt’s app, members are connected to local shoppers who help facilitate a delivery experience that is personalized, efficient and convenient.
“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 Bill Smith, Shipt’s founder and CEO. “We’ll continue growing our marketplace and membership base, working with a variety of retailers to drive scale and efficiencies.”
Shipt will be a wholly owned Target subsidiary, and will continue to run its business independently. It also plans to expand partnerships with other retailers seeking same-day, last-mile capabilities.
In addition to same-day delivery capabilities, Target will also leverage Shipt’s expertise as the company enhances and strengthens its supply chain, including integration with the recently acquired transportation technology company, Grand Junction.