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Target to buy same-day delivery platform Shipt for $550m

RBR Staff Writer Published 14 December 2017

US-based Target has agreed to acquire online same-day delivery platform, Shipt, for $550m.

Based in Birmingham of Alabama, Shipt is a membership-based grocery marketplace and same-day delivery platform with a network of more than 20,000 personal shoppers.

The platform will help to fulfill orders from various retailers and deliver within hours in over 72 markets.

The acquisition will allow Target to expand its digital fulfillment efforts and same-day delivery services to customers at around half of Target stores by early 2018.

Target is planning to integrate its network of stores with Shipt’s technology platform and community of shoppers to offer effective same-day delivery to customers across the country.

Before the holiday season of 2018, Target is planning to offer the same-day delivery service from the majority of its stores.

Target intends to include all major product categories under same-day delivery service by the end of 2019.

In addition, Target is planning to incorporate Shipt’s expertise with recently acquired transportation technology firm, Grand Junction, to enhance supply chain services.

Subject to customary closing conditions, the deal is expected to complete by the end of this year.

Target executive vice president and COO John Mulligan said: “We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it’s ordering online and picking up in one of our stores, driving up to pick up an order, or taking advantage of services like our new Restock program.”

Shipt’s founder and CEO Bill Smith said: “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.”

Image: Target CEO Brian Cornell and Shipt’s founder and CEO Bill Smith. Photo: courtesy of Target Brands, Inc.