Target buys grocery delivery company ‘Shipt’
MINNEAPOLIS, Minn. — This holiday season, Target is doing some shopping of its own.
The retailer is buying the online grocery delivery company called “Shipt.” The deal will allow most Target customers to have groceries they order to be delivered right to their front door.
Shipt, which charges members $99 a year, sends people out to choose and deliver groceries from stores. Target said Wednesday that it will add more products to the service next year, such as home goods and electronics. Target shoppers will have to make orders through Shipt’s app or website and pay the annual fee to get same-day delivery. There are plans to incorporate Shipt into Target’s app and website, but the companies did not say when that would happen.
Retailers have been looking for ways to speed up delivery as they try to match the fast service offered by Amazon.com Inc.
The deal is worth $550 million dollars and connects Target stores with Shipt’s 20,000 personal shoppers who make deliveries in a matter of hours.
Target said it expected the deal to be completed before the end of this year.
For more information on Shipt, visit their website.