Shopify Logistics and Deliverr acquired by logistics platform Flexport
Tech-driven logistics platform Flexport has acquired Shopify Logistics and its assets, including Deliverr for an undisclosed price, in a move to expand its global services into last mile and e-commerce fulfillment.
Flexport claims that its technology makes it simple for companies to visualize, plan, and manage the flow of products from the manufacturer to the store of the customer or doors that are unified on one technology platform.
By integrating Shopify Logistics, Flexport will improve its artificial AI-driven optimization, allowing for a more efficient entire supply chain across the globe which will reduce costs and improve the reliability of customers.
According to Flexport, traditional supply chain technology hasn’t been able to establish an integrated system that can handle end-to-end plan, monitoring and execution. The logistics platform said that it is aiming to transform all of that by reducing out-of-stock for customers, the cost for businesses, and reducing the environmental impact caused by the transportation of products.
Dave Clark — Flexport CEO said: “For Flexport, this acquisition enables our vision for a full digital transformation of the global supply chain that we will bring to all customers. This democratization and pooling of scale will level the playing field for cost and speed of delivery for all businesses, not just the largest corporations in the world.
“The end-to-end supply chain industry has not undergone the technological breakthroughs and data platforming we have seen in other sectors. Flexport is changing that. After the past several years of public discourse focusing on what’s wrong with the supply chain, it’s exciting to look ahead to how Flexport can bring solutions and make the global supply chain better for everyone.”
Flexport will also be the exclusive Shopify Logistics partner and provider of Shop Promise for Shopify’s merchants.
Shop Promise is said to provide transparent delivery timelines that include next-day and two-day delivery options for clients of Shopify merchants. It will also be available to all major platforms for commerce.
The features will operate with Flexport and will be accessible through the merchant-facing Shopify Fulfillment Network application which provides merchants with an integrated logistics experience via Shopify.
Tobi Lütke — Shopify founder and CEO said: “A key part of the success of Shopify Logistics to-date has been our mission-aligned and deeply knowledgeable partner, Flexport.
“Today’s announcement will enable Flexport and Shopify to carry the merchant-centered logistics vision forward, and give more businesses access to a fast, flexible and affordable logistics network that seamlessly integrates with the Shopify tools they know and love.”
The deal, which is subject to regulatory approvals and other conditions, is likely to close in Q2 2023.