Shopify has announced its acquisition of San Francisco based e-commerce company, Deliverr. The acquisition, which costs $2.1 billion in both cash and stocks, “will create an end-to-end logistics platform to unlock fast and easy fulfillment for millions of merchants.”
The acquisition of Deliverr is by far, the largest acquisition in the history of the Canadian based company, in its quest to create a worthy competition with retail giant, Amazon.
Speaking on the acquisition, Shopify founder and CEO Tobi Lütke says:
“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 their superpower,” Lütke said in a blog post.
“Together with Deliverr, SFN 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,” Lütke added.
Shopify added that it would combine Deliverr’s technology with its Shopify Fulfilment Network (SFN) which is used by merchants to store inventory and fulfill orders. Deliverr’s technology would also be used to power Shopify’s service that empowers customers to have 2-day and next day delivery.
Commenting on the acquisition, Deliverr’s co-founder and CEO, Harish Abbott said:
“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. We’re excited to join Shopify in their mission to make commerce better for everyone while democratizing shipping and fulfillment for independent entrepreneurs.”
Deliverr is a San Francisco based e-commerce company. It uses analytics to predict where people might be interested in buying goods, then uses the information about their wants and needs to ensure items can be delivered quickly.
It was founded in July, 2017 by Harish Abbott, and Michael Krakaris.
Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand, and Dcott Lake. It is a Canadian based company with its headquarters in Ottawa. Shopify was founded after the Lütke attempted to open Snowdevil – an online store for snowboarding equipment – and was disappointed with the e-commerce products on the marketplace. Lütke then decided to build Shopify.
Shopify offers online retailers a suite of services which includes payments, marketing, shipping, and customer engagement tool. Shopify reportedly caters to about 1.7 million businesses in 175 countries.