Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!
Latest headlinesManufacturing News

Target acquires same-day grocery delivery company Shipt

Retailer pays $550M with hopes of offering same-day delivery services at approximately half its stores by early 2018

By Crystal Lindell
Shipt
At launch, Target will offer same-day delivery of groceries, essentials, home, electronics and other products, while expanding the products offered over time. By the end of 2019, same-day delivery will include all major product categories at Target. Source: Shipt.
December 13, 2017

Target is making a major push into the online marketplace — with an emphasis on groceries. The retailer has agreed to pay $550 million cash to acquire Shipt, Inc., a leading online same-day delivery platform that’s known for its grocery delivery service.

The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. And Target says the service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season.

At launch, Target will offer same-day delivery of groceries, essentials, home, electronics and other products, while expanding the products offered over time. By the end of 2019, same-day delivery will include all major product categories at Target.

Specifically, Target says it plans to leverage its network of stores and Shipt’s proprietary technology platform and community of shoppers to quickly and efficiently bring same-day delivery to guests across the country.

Basically, Shipt works by paring what are essentially personal shoppers with users who put in an order. Under the company’s current business model, it charges a $99 annual fee and by paying that members get most deliveries at not additional charge.

“We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it’s ordering online and picking up in one of our stores, driving up to pick up an order, or taking advantage of services like our new Restock program,” says John Mulligan, executive vice president and chief operating officer for Target. “With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country."

Founded in 2014 and located in Birmingham, Ala., Shipt is a rapidly growing membership-based grocery marketplace and same-day delivery platform. The service leverages an extensive network of more than 20,000 personal shoppers to fulfill orders from various retailers and deliver within hours in more than 72 markets.

Shipt values a personalized, customer-first delivery experience that simplifies life and saves time for members. Through Shipt’s app, members are connected to local, reliable shoppers who help facilitate a quality delivery experience that is personalized, efficient and convenient.

“We are very excited to partner with Target, one of the most loved retailers in the country, with a reputation for supporting local communities,” says said Bill Smith, Shipt’s founder and CEO. “Partnering with Target and the national scale they provide allows Shipt to further accelerate our growth, bringing our service to more people, in more markets across the country,”

Shipt will be a wholly owned Target subsidiary, and will continue to run its business independently.

It also plans to expand partnerships with other retailers seeking same-day, last-mile capabilities. All current Shipt employees will continue to be employed by Shipt and will work from their current offices in Birmingham and San Francisco.

Smith will remain in his current role, and will report to Target COO John Mulligan. In addition to same-day delivery capabilities, Target will also leverage Shipt’s expertise as the company enhances and strengthens its supply chain, including integration with the recently acquired transportation technology company, Grand Junction.

KEYWORDS: Food and beverage delivery grocery retail

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Crystallindell2013 1

Crystal Lindell has more than 10 years of journalism experience, and worked primarily at daily newspapers before joining BNP Media 2010. Before joining Food Engineering as the Managing Editor, she was the managing editor of a sister publication, Candy Industry Magazine, where she learned first-hand the joys of eating chocolate for breakfast. Lindell holds a master’s degree in public affairs reporting from the University of Illinois – Springfield and a bachelor’s degree in political science from Western Illinois University.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Global Organic Food & Beverage Market to Grow

    Global Organic Food & Beverage Market to Grow

    With a CAGR of 12.07%, Bonafide Research estimates this...
    People & Industry News
  • skilled MEP worker

    Predicting Food and Beverage Manufacturing Trends for 2024

    The two words that should be kept in mind are labor and...
    Automation
    By: Derrick Teal
  • cleaning and sanitation

    The basics of cleaning and sanitation in food plants

    Sanitation maintains or restores a state of cleanliness...
    Food Safety
    By: Richard F. Stier
Subscribe For Free!
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

More Videos

Popular Stories

Conagra Logo

Conagra Brands to Sell Chef Boyardee Brand to Hometown Food Company

Chobani groundbreaking

Chobani to Build $1.2B Manufacturing Facility in New York

conveying and packaging operations

Planning Tips for Conveying Systems and Lines

CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Events

June 17, 2025

Refrigerated & Frozen Foods’ State of the Cold Chain

Kelley Rodriguez, Editor in Chief of Refrigerated & Frozen Foods, will be joined in this 60-minute webinar by industry experts to help unpack the latest research.

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

Foodmaster.com

Related Articles

  • online shopping

    Amazon leads online grocery sales at 18% of market

    See More
  • IBM logo

    IBM STUDY: Grocery scanner data can speed foodborne illness outbreak investigations

    See More
  • Memphis Meats

    Cargill, Richard Branson invest in meat company that doesn’t slaughter

    See More

Related Products

See More Products
  • Functionalized_Carbohydrate.gif

    Functionalizing Carbohydrates for Food Applications

See More Products
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing