Target to Acquire Same-Day Delivery Platform
Target Corp. has agreed to acquire Shipt, Inc., an online same-day delivery platform, for $550 million in cash.
Target will leverage its network of stores and Shipt’s technology platform bring same-day delivery to shoppers nationwide.
Target said the acquisition helps accelerate its digital fulfillment efforts.
It expects to offer same-day delivery services at approximately half of Target stores by early 2018, and to offer it from the majority of Target stores, 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.
“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, Target’s executive vice president and chief operating officer.
Founded in 2014 and located in Birmingham, Alabama, Shipt is a membership-based grocery marketplace and same-day delivery platform.
The service leverages an extensive network of over 20,000 personal shoppers to fulfill orders from various retailers and deliver within hours in more than 72 markets.
Through Shipt’s app, members are connected to local, reliable shoppers.
Shipt will be a wholly owned Target subsidiary, and will continue to run its business independently, with its current employees. The all-cash transaction is expected to close by the end of 2017.