Shopify acquires Deliverr in $2.1 billion deal
Canadian e-commerce giant Shopify announced on Thursday the acquisition of Deliverr Inc., a fulfillment technology provider, as part of a $2.1 billion deal.
By bringing the end-to-end software and logistics platform into the Shopify ecosystem, Shopify aims to streamline logistics to provide simplicity and to scale advantages for its merchants.
The agreement includes the integration of Deliverr’s network management software; team of software engineers, operations experts and customer champions; and an asset-lite network of warehouse, carrier, and last mile partners. In turn, Shopify will more than double the size of its fulfillment team.
“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.”
Founded in 2017, Deliverr’s logistics network currently delivers more than a million orders per month for thousands of merchants across the U.S.
The $2.1-billion deal consists of approximately 80% in cash and 20% in Shopify Class A Subordinate Voting Shares.
“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,” said Harish Abbott, co-founder and CEO of Deliverr.
“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.”
The announcement coincides with the reporting of financial results for the quarter ended March 31, 2022. In particular, Shopify announced adjusted net income of US$25.1 million, down from US$254.1 million in the same period last year.
Gross Merchandise Volume (GMV) for the first quarter was $43.2 billion, which represents a two-year compound annual growth rate of 57% and an increase of $5.9 billion, or 16% over the first quarter of 2021.
Revenue for the company was US$1.2 billion, up 22 percent, but below expectations of US$1.25 billion.
Looking ahead, the Ottawa-based tech firm said it expects year-over-year revenue growth to be lower in the first half and highest in the fourth quarter of 2022.
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