According to multiple media reports, Shopify (SHOP) is in talks to buy technology start-up
Deliverr for $2 billion U.S.
The deal would help the Canadian e-commerce company to expand in fulfillment services.
Privately held Deliverr helps merchants on Amazon (AMZN), EBay (EBAY) and other online
marketplaces get products to consumers in two days or less.
Fast-shipping has become a must-have service for retailers, as the booming online shopping
market became more competitive during the pandemic.
Deliverr uses analysts to predict where people might be interested in buying art supplies,
makeup, shampoo and other goods. Then it uses that information to position items in its
warehousing network to achieve quick delivery.
If the current talks succeed, the acquisition would be Shopify’s largest-ever deal and
complement the company’s subscription-based software that allows anyone to set up an online
store.
Shopify soared during the pandemic as online shopping boomed. However, as COVID-19
recedes and restrictions have lessened, the company’s shares have fallen sharply.
Shopify’s stock fell 13% to $525 U.S. in New York trading yesterday (April 20) and is now down
62% this year, giving the Ottawa-based company a market value of about $66 billion U.S.
In November, Deliverr raised $250 million U.S. in a funding round led by Tiger Global at a
valuation of $2 billion U.S.