Shopify, an e-commerce platform for small businesses, announced plans to acquire Deliverr, a fulfillment technology provider. The acquisition is valued at approximately $2.1 billion, broken down into 80 percent cash and 20 percent Shopify Class A Subordinate Voting Shares.
Together the two entities hope to develop a robust, end-to-end fulfillment and logistics network for online merchants. According to a company statement, this deal is Shopify’s largest acquisition in the company’s history.
In response to global supply chain issues, Shopify plans to double down on logistics and help small businesses who use its platform stay competitive in the online shopping market. Deliverr will combine with the Shopify Fulfillment Network (SFN) to better manage merchant inventory from port to porch as it travels through warehouse, shipping and delivery networks. The acquisition will also bring same-day and two-day shipping to Shopify’s offerings, which the company is calling “Shop Promise.”
“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,” Shopify founder and CEO Tobi Lütke said in a statement. “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.”
This acquisition comes after a stellar year of growth for Shopify. In Shopify’s recent first-quarter report, the company announced it grew its total revenue by 22 percent, the highest growth rate in the company’s history. Shopify also grew its monthly recurring revenue (MRR) by 17 percent year-over-year, reaching $105.2 million as of March 31.
“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,” Deliverr co-founder and CEO Harish Abbott said in a statement. “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.”
In the meantime, both Bay Area companies are hiring. Deliverr is actively hiring for nearly 20 roles and Shopify is currently looking to fill nearly 30 open positions.
