Target said Wednesday it has agreed to acquire Shipt, Inc., an Alabama-based online same-day delivery platform, for $550 million in cash. The retailer stated it will leverage its network of stores and Shipt’s proprietary technology platform and community of shoppers to quickly and efficiently bring same-day delivery to guests across the country.
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.
Shipt, a two-year-old startup, has raised more than $60 million from investors, including Greycroft Partners, e.ventures and the company’s seed investor, Harbert Management Corp.
The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season, said Target.
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.