Target buys same-day delivery startup

Target buys same-day delivery startup

Target buys same-day delivery startup

Target will soon compete with Walmart and Amazon on speedy deliveries. Target said Wednesday that it would add more products to the service next year, such as home goods and electronics, and that most of its in-store products will be available via Shipt by 2019. Target has just acquired Shipt, a same day delivery business, which could give it a strong competitive advantage in many areas of ecommerce, particularly in densely populated urban areas. However, there could be a big new competitor on the block-Target. The retailer will use its network of stores along with the program in order to help its community of shoppers acquire same-day delivery and to increase overall customer satisfaction.

The company has a network of more than 20k shoppers delivering in more than 72 markets around the U.S., and Target believes the acquisition will "significantly accelerate [their] digital fulfillment efforts". The service will be available at about half of Target stores beginning early 2018 and will expand to almost all Target stores by the 2018 holiday season. The service will cost customers an annual fee of $99. In the future, Shipt also plans to expand its partnerships with other retailers offering its same-day service. The acquisition will be immaterial to Target's near-term financial results, while the company is still expected to accelerated in digital and total sales over the medium term.

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