Shopify Acquires Shipping Logistics Startup Deliverr For $2.1B

Shopify Acquires Shipping Logistics Startup Deliverr For $2.1B

The San Francisco, California-based ecommerce success story Deliverr has announced its acquisition by Shopify for $2.1B, a sum that includes both money and inventory. This is the biggest acquisition in Shopify’s history, and it will help it create a complete logistics platform that allows companies to quickly ship products to consumers.

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The recent news of Shopify’s acquisition of shipping logistics startup Deliverr for $2.1B may surprise some. While many retailers have long struggled with delivery options, the recent pandemic has increased demand for such services. As a result, the rate of Delivery for digital products increased exponentially. In response, online retailers have been looking for more reliable shipping options. By acquiring Deliverr, Shopify will be able to offer next-day and two-day shipping to its users.

The deal will make it easier for online retailers to ship and fulfill their orders. Deliverr will offer shipping management software and a network of asset-light drivers. Shopify will pay $1.68 billion in cash and the remainder in stock. Deliverr’s services include:

  • Inventory receiving and cross-docking capabilities.
  • Inventory placement algorithms.
  • Real-time fulfillment optimization across multiple channels.

The deal is the largest acquisition in Shopify’s history and will further streamline Shopify’s shipping and fulfillment services.

The acquisition of Deliverr will make the merchants’ supply chains more efficient and boost Shopify’s fulfillment network. The combined company’s technology will also power Shop Promise, an next-day delivery initiative that uses Deliverr’s services. This will add even more options to merchants, including storage, freight, and inventory preparation and returns. The company raised $490.9 million in capital before its acquisition by Shopify, an impressive figure.

logistics startup

Ecommerce platform Shopify has completed the acquisition of shipping logistics startup Deliverr for $2.1 billion. The deal represents Shopify’s most significant acquisition and will further streamline its merchant supply chains. Deliverr, which was founded in 2006 by Harish Abbott, will continue to serve a variety of ecommerce platforms, including Amazon and Walmart. The combined company’s two-day shipping and fulfillment services will double Shopify’s fulfillment team.

The acquisition of Deliverr comes as retail valuations continue to rise. Amazon recently introduced Buy With Prime, allowing merchants to offer Prime shipping options for customers. The new Delivery badge will be visible on Shopify’s platform and enable customers to make same-day or next-day delivery of their items. Combining these companies will increase visibility for merchants while also improving their shipping relationships.

Also Read: Meta Makes First Investment in Asian Market With a $3M Seed Round for Ami

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