Expansion into Fulfillment Services on the Horizon for Canadian E-commerce Giant
In a move that could revolutionize the e-commerce landscape, Shopify Inc. is reportedly in talks to acquire technology startup Deliverr. According to sources familiar with the matter, the acquisition would value San Francisco-based Deliverr at over US$2 billion, making it Shopify’s largest deal to date.
Deliverr: A Key Player in Fast Shipping and Fulfillment
Deliverr is a closely held company that specializes in helping merchants on online marketplaces such as Amazon.com Inc. and eBay Inc. get products to consumers within two days or less. The company uses advanced analytics to predict demand for specific products and positions them strategically in its warehousing network across the country.
A Must-Have Service for Retailers
Fast shipping has become a crucial differentiator for retailers, particularly in the competitive online shopping market that has grown exponentially during the pandemic. Deliverr’s expertise in providing swift delivery solutions could complement Shopify’s subscription-based software that enables anyone to set up an online store.
Shopify’s Market Value and Recent Developments
Shopify, led by Chief Executive Officer Tobi Lutke, saw its stock soar in market value during the pandemic-driven shopping boom. However, the company has faced a decline in recent times, with its stock falling 11% to US$542.17 at 1:03 p.m. in New York trading on Wednesday.
A Significant Acquisition for Shopify
If the deal goes through, it would be Shopify’s largest acquisition to date, according to data compiled by Bloomberg. The acquisition could provide Shopify with a significant boost in its expansion into fulfillment services and cement its position as a leading player in the e-commerce industry.
Deliverr’s Recent Funding Round
In November, Deliverr raised US$250 million in a funding round led by Tiger Global at a valuation of US$2 billion. Existing investors including 8VC, Activant, GLP, Brookfield Technology Partners, and Coatue also participated in the funding round.
Shopify’s Response to Acquisition Rumors
A representative for Shopify declined to comment on the acquisition rumors, while representatives for Deliverr did not immediately respond to requests for comment.
The Potential Impact of the Acquisition
The potential acquisition of Deliverr by Shopify could have significant implications for the e-commerce industry. It would provide Shopify with a powerful tool to compete in the growing market for fulfillment services and further establish itself as a leading player in the online shopping space.
Conclusion
Shopify’s talks to acquire Deliverr are a testament to the company’s commitment to expansion and innovation. If the deal goes through, it could revolutionize the e-commerce landscape and cement Shopify’s position as a leader in the industry.