Shopify has made the largest acquisition in its history.
The Canadian e-commerce technology company will acquire Deliverr, a San Francisco-based fulfillment provider, for $2.1 billion in cash and stock. Deliverr offers e-commerce fulfillment and order-storage services, shipping more than 1 million orders per month in the U.S. from thousands of merchants.
Shopify said the acquisition will create an end-to-end logistics platform that will unlock fast and easy fulfillment for millions of merchants.
Deliverr will combine with Shopify Fulfillment Network (SFN) — a fulfillment service that merchants can use to store inventory and fulfill orders — to strengthen SFN’s merchant inventory management capabilities. In addition, SFN and Deliverr will power a new service, called Shop Promise, that will offer consumers two-day and next-day delivery options for merchants using Shopify or Deliverr.
“Our goal is to not only level the playing field for independent businesses, but tilt it in their favor — turning their size and agility into a superpower,” said Tobi Lütke, Shopify’s CEO. “Together with Deliverr, Shopify Fulfillment Network will give millions of growing businesses access to a simple, powerful logistics platform that will allow them to make their customers happy over and over again.”
Added Harish Abbott, co-founder and CEO of Deliverr: “Our technology and expertise in inventory management, inventory placement, and demand chain combines perfectly with Shopify’s roadmap, enabling us to now build an end-to-end logistics platform together. Shopify has been building the future of merchant-first fulfillment solutions, and our team has a track record of helping businesses of all sizes streamline their operations.”