is buying Shipt,
a platform that
enables same-day delivery.
The acquisition will allow Target to deliver groceries,
furniture, and other products the same day that customers order
Shipt will continue to work with other retailers for
announced it is acquiring the delivery platform Shipt,
drastically increasing the retailer’s ability to make same-day
deliveries across the US.
With a price of $550 million, it’s one of the largest
acquisitions in Target’s history, the retailer said.
Shipt will supercharge Target’s same-day delivery efforts,
enabling same-day delivery at half of Target stores by early next
year. Target’s plan is to have a same-day delivery offering in
almost all stores and all major cities across the US by the 2018
For now, same-day delivery will be limited
to “groceries, essentials, home, electronics and other
products,” but it will expand to every product category in
Though Shipt will be a wholly owned Target subsidiary, it
will still operate like a retail partner. Its employees will shop
at Target stores — not warehouses — for delivery purposes, just
like it does it for other retailers.
Shipt requires a $99-a-year membership for unlimited free
deliveries. The current minimum for Shipt orders is $35, but
Target may remove that for orders from its own stores.
Shipt is currently in 72 cities in the US, but it will
expand rapidly with Target’s help.
Same-day delivery is increasingly becoming the battlefield
for retailers fighting to be more convenient for customers.
Walmart has ramped up its same-day delivery prowess with its
acquisition of New York City-based Parcel. Best Buy
also expanded its same-day delivery program, and reduced its
cost. Amazon, for its part, offers same-day delivery through its
Prime Now program.