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Shopify Is in Talks to Buy Tech Startup Deliverr

Shopify Inc. is in talks to buy technology startup Deliverr, according to people familiar with the matter, a move that would help the Canadian e-commerce company expand in fulfilment services.
Shopify
Shopify is in talks to buy tech start-up Deliverr. (Shutterstock)

Shopify Inc. is in talks to buy technology startup Deliverr, according to people familiar with the matter, a move that would help the Canadian e-commerce company expand in fulfilment services.

A deal could value San Francisco-based Deliverr at more than $2 billion, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and discussions could fall apart, the people added.

A representative for Shopify declined to comment while representatives for Deliverr didn’t immediately respond to requests for comment.

Closely held Deliverr helps merchants on Amazon.com Inc., EBay Inc. and other online marketplaces get products to consumers in two days or less, according to its website. Fast-shipping has become a must-have service for retailers, as the booming online shopping market became increasingly 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 swift delivery.

If talks are successful, it would be Shopify’s largest-ever deal, according to data compiled by Bloomberg, and complement the company’s subscription-based software that allows anyone to set up an online store.

The deal “would be a small step in the right direction, especially as Amazon.com has doubled its logistics network in the past two years,” Bloomberg Intelligence analyst Anurag Rana said in note Wednesday. “Unlike Amazon, Shopify doesn’t own large distribution centers and depends on third-party companies to provide faster shipping to its merchants.”

Shopify, led by Chief Executive Officer Tobi Lutke, soared during the pandemic-driven shopping boom. The stock fell 13 percent to $527.09 at 3:14 p.m. in New York trading Wednesday, giving the Ottawa-based company a market value of about $67 billion.

In November, Deliverr raised $250 million in a funding round led by Tiger Global at a valuation of $2 billion, a statement showed. Existing investors including 8VC, Activant, GLP, Brookfield Technology Partners and Coatue also participated.

By Kiel Porter, Crystal Tse and Katie Roof

Learn more:

How Shopify Conquered Fashion

The Canadian e-commerce platform is emerging as one of the pandemic’s big winners. How will the company that made it possible for any brand to set up an online store use its newfound clout?

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