Venture Capital: Shopify Agrees To Buy E-Commerce Logistics Startup Deliverr For $2.1B
This is the largest acquisition in Shopify’s history.
Shopify (NYSE: SHOP) announced Thursday its agreement to acquire Deliverr, a logistics network and provider of fulfillment technology, for $2.1 billion. The startup, which was founded in 2017, currently delivers over a million orders per month across the US.
Shopify’s rationale for the deal: An investment in logistics to counter the challenges arising from the disruptions in the global supply chains and shipping delays, and to thus help merchants to fulfill orders as quickly as they need to stay competitive. (Shopify)
Accordingly, the Shopify Fulfillment Network (SFN) and Deliverr are combining to remove supply chain complexity for merchants of all sizes, on and off Shopify.
Furthermore, Deliverr, together with SFN’s direct-to-consumer fulfillment operations, will combine with 6 River Systems’ warehouse automation technology. The three units will form a broader logistics unit within Shopify under the group’s newly appointed CEO, Aaron Brown.
The combination will power Shop Promise, a new service that offers consumers two-day and next-day delivery options.
“Our technology and expertise in inventory management, inventory placement, and demand chain combine perfectly with Shopify’s roadmap, enabling us to now build an end-to-end logistics platform together,” said Harish Abbott, co-founder and CEO of Deliverr, in a statement.
“Our goal is to not only level the playing field for independent businesses but tilt it in their favor—turning their size and agility into their superpower,” said Tobi Lütke, founder and CEO of Shopify.
“Fast, reliable shipping is now table stakes; it’s a deciding factor for customers when shopping online, and their expectations are only growing,” says Shopify.
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