Shopify is looking to purchase fast shipping company Deliverr in a bid to take on behemoths like eBay and Amazon in the fulfillment and e-commerce markets.
The deal could value the San Francisco startup at more than US$2 billion according to insider sources cited by Bloomberg, who note that “no final decision has been made and discussions could fall apart.”
Deliverr currently runs fast-shipping services for eBay and Amazon merchants, using metrics to predict which items will be most in demand in various regions. It uses this information to make sure these items are positioned in the correct area in its network of warehouses, to ensure swift delivery.
This deal would mark Shopify’s largest ever purchase, and would be a boon to its subscriber-based online store business.
Bloomberg Intelligence analyst Anurag Rana said in note overnight that 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.
“Unlike Amazon, Shopify doesn’t own large distribution centers and depends on third-party companies to provide faster shipping to its merchants.”
Shopify investors seem unsure that such a large move is wise – shares fell 13 per cent in overnight trading.
