Target to acquire Shipt, providing same-day delivery service
Minneapolis-based Target has announced it has come to an agreement to acquire Shipt, a digital same-day delivery platform for $550 million in cash. The retailer will leverage its network of store’s and Shipt’s technological platform to quickly and efficiently bring same-day delivery to consumers across the country.
The retailer will offer same-day delivery on groceries, essentials, home, electronics and other products. Approximately half of the stores will provide the service by early 2018, remaining stores in major markets will see the service roll out before the 2018 holiday season.
"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. 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," John Mulligan, executive vice president and chief operating officer for Target said. "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."
Founded in Birmingham, Ala., in 2014, Shipt is a membership-based grocery marketplace and same-day delivery platform. The company leverages a network of over 20,000 personal shoppers to fulfill orders at various retailers to provide delivery within hours in more than 72 markets. As part of the acquisition, Shipt will be a wholly owned Target subsidiary that will continue to run its business independently.
"We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities. 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," Bill Smith, Shipt's founder and CEO 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."
This news comes just on the heels of Walmart and Amazon announcing that they will be expanding upon their already established delivery services.
The retailer will offer same-day delivery on groceries, essentials, home, electronics and other products. Approximately half of the stores will provide the service by early 2018, remaining stores in major markets will see the service roll out before the 2018 holiday season.
"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. 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," John Mulligan, executive vice president and chief operating officer for Target said. "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."
Founded in Birmingham, Ala., in 2014, Shipt is a membership-based grocery marketplace and same-day delivery platform. The company leverages a network of over 20,000 personal shoppers to fulfill orders at various retailers to provide delivery within hours in more than 72 markets. As part of the acquisition, Shipt will be a wholly owned Target subsidiary that will continue to run its business independently.
"We are very excited to partner with Target, one of the most loved retailers in the country with a reputation for supporting local communities. 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," Bill Smith, Shipt's founder and CEO 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."
This news comes just on the heels of Walmart and Amazon announcing that they will be expanding upon their already established delivery services.