Target to acquire delivery startup Shipt for $550mn
Leading US supermarket chain Target has announced that it will be acquiring Shipt, a leading same-day delivery startup, for $550mn.
Target will use the delivery expertise of Shipt as part of its initiative to bring same-day delivery to the large majority of its customers across the US by implementing the service in half its stores by 2018.
“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, Target.
“By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests.”
At launch, Target will offer same-day delivery on a select range of groceries, essentials, home electronics and other products, with a view to expanding this to include all of its major product categories by the end of 2019.
Shipt will continue to run its existing operations, despite the whole cash acquisition from Target.
“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.