Shopify unloads logistics after acquiring Deliverr last year
Shopify is selling its logistics business, which includes Deliverr, to supply chain technology company Flexport, the companies announced today.
Why it matters: It's a quick reversal in strategy for the Ottawa, Ontario-based e-commerce company, which spent years building its own infrastructure.
Of note: Shopify acquired last-mile delivery startup Deliverr just last year for $2.1 billion.
Separately: The e-commerce company is reducing its workforce by 23%, which encompasses its exit from its logistics business, per an SEC filing.
Details: Shopify has agreed to sell the majority of its logistics business to Flexport in exchange for stock that represents 13% equity interest in the acquirer, also per an SEC filing.
- The transaction is expected to close in Q2.
Catch up fast: Flexport has raised about $2.3 billion to date, including nearly $1 billion last year, per CNBC.
What they're saying: "Logistics was clearly a worthwhile side quest for us, and started to create the conditions for our main quest to succeed," CEO Tobias Lütke said in a statement.
- "We iteratively built a solution, step by step, through software, leases, and M&A deals, that could be an independent company one day," he said.
- "Shopify was the perfect place to bootstrap this effort from 0 to 1 and we have done this," Lütke adds.
- With the sale to Flexport, the acquirer will become the preferred logistics partner for Shopify, he mentioned.