Coming off of strong growth during the pandemic, Shopify has announced a deal to acquire Deliverr, a move that will help it combat Walmart and Amazon.
Shopify is one of the leading online shopping platforms, but it has to compete with more traditional businesses as well. The company is obviously doing well, bringing in $1.2 billion in revenue in Q122, a 22% increase. Shopify is now building on that momentum with a deal to acquire Deliverr.
“While we’ve experienced massive macro shifts since the start of the pandemic, the one mainstay has been that Shopify is the commerce platform of choice for merchants in any environment, with the ability to support commerce on any surface,” said Harley Finkelstein, Shopify’s President. “This has earned Shopify significant merchant trust and the ability to help them with more parts of their business, which is why we are eager to bring Deliverr’s team and technology to our merchants.”
The move will help Shopify provide the logistics supplier infrastructure its customers need.
Deliverr’s asset-light infrastructure complements and extends the reach of Shopify’s network of large-capacity, self-operated hubs, and enhances affordable access to a two-day delivery promise in the U.S. across all channels. With Deliverr, Shopify strengthens its ability to offer merchants simplified inventory management, demand-driven inventory balancing, and fast delivery from coast to coast, with minimal inventory required. Deliverr, which ships over a million orders per month across the U.S., has already benefited thousands of merchants, many of whom use Shopify, as the hyper-fragmented market of freight forwarders, transportation providers, and 3rd-party logistics companies can be overwhelming for users.