Target to Buy Grocery Delivery Service Shipt for $550 Million


Source: Shipt

Target will hand over $550 million in cash to acquire same-day grocery delivery service Shipt, as it seeks to compete against rivals Amazon and Walmart.

“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 same-day delivery to guests across the country,” Target’s COO John Mulligan said in a statement.

Target will begin to offer same-day delivery of groceries, electronics and other items via Shipt starting early 2018. They hope to offer the same-day service for “all major product categories” by the end of 2019.

To use the service a Target customer must first become a Shipt member, which includes a $99 annual fee. Mulligan revealed over time the service will become integrated with and the Target App.

The deal with Shipt is set to close by the end of 2017 and marks one of Target’s biggest acquisitions to date.