Target to buy grocery delivery service Shipt for $550 million

Target-Shipt

Target is planning to acquire same-day delivery service platform Shipt, a rival to Instacart, for $550 million in cash. Target will begin to offer same-day delivery of groceries, home furnishings, electronics and other products via Shipt’s platform, starting in early 2018.

This builds on Target’s billion-dollar investment strategy and longer-term goals to catch up with rivals Walmart and Amazon, which have been making splashes across the industry for much of 2017.

Alabama-based Shipt, which also has an office in San Francisco, will continue to work with other retailers despite being owned by Target.

This acquisition follows a series of  successful expansions that Shipt has made in the Southeast. After launching retail delivery from Kroger™ and Publix™ in Nashville, Tennessee and Atlanta, Georgia earlier in 2017, Shipt extended its service to Costco customers this August.  Since its founding in 2014, Shipt has been rapidly expanding and offers quality, personalized grocery delivery to over 25 million households in 51 markets across the country.

By the end of 2019, Target plans to use Shipt for same-day delivery of “all major product categories.”

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