Shopify / Deliverr 2022
Shopify acquired Deliverr for $2.1B on May 5, 2022.
- Target
- Deliverr
- Acquirer
- Shopify
- Deal value
- $2.1B
- Deal type
- Mixed
- Announced
- May 5, 2022
- Sub-sector
- Vertical SaaS Payments
Transaction overview
- Shopify announced the acquisition of Deliverr on May 5, 2022 for approximately $2.1 billion.
- Consideration consisted of roughly $1.675 billion in cash and $425 million in Shopify stock.
- The deal closed on July 8, 2022 following regulatory clearance.
- Deliverr is a San Francisco-based fulfillment technology company serving e-commerce merchants.
- Deliverr operated a network of warehouses enabling 1-2 day delivery badges on merchant storefronts.
- Shopify is a Canadian commerce platform serving over 1.75 million merchants globally as of 2022.
- Shopify acquired Deliverr to expand Shopify Fulfillment Network with owned logistics technology.
- The acquisition was Shopify's largest to date at announcement.
Why it matters
- The deal signaled Shopify's intent to compete directly with Amazon's fulfillment infrastructure by building owned logistics capacity.
- At $2.1 billion, the acquisition represented a significant bet on physical logistics at a time when Shopify's stock had already declined sharply from 2021 highs.
Strategic rationale
Shopify buys fulfillment marketplace to anchor its Shop Promise two-day delivery initiative, later partly divested to Flexport in 2023.
Deal terms & multiples
About Deliverr
Deliverr was a San Francisco-based fulfillment technology company founded in 2017. The company offered merchants fast, affordable fulfillment services by distributing inventory across a network of third-party warehouses located near end consumers. Merchants using Deliverr could display 1-2 day delivery badges on listings across Shopify, Amazon, Walmart, and other channels. Deliverr raised over $900 million in venture funding before the acquisition.
- Founded
- 2017
- HQ
- United States
- Prior funding
- ~$940 million total venture funding, including a $250 million Series E in 2022 led by Tiger Global
- Key metric
- Over $900 million raised in venture funding prior to acquisition
About Shopify NYSE: SHOP
Shopify is a Canadian commerce platform headquartered in Ottawa, Ontario, founded in 2006. The company provides software and payments infrastructure to merchants selling online and in person, and reported over $4.6 billion in revenue for fiscal year 2021. Shopify went public on the Toronto Stock Exchange and New York Stock Exchange in 2015. By 2022 the platform served more than 1.75 million merchants across approximately 175 countries.
- Founded
- 2006
- Ticker
- NYSE: SHOP
Frequently asked questions
How much did Shopify pay for Deliverr?
Shopify paid approximately $2.1 billion, consisting of roughly $1.675 billion in cash and $425 million in Shopify stock.
When did the Shopify Deliverr deal close?
The acquisition closed on July 8, 2022, about two months after the May 5, 2022 announcement.
What does Deliverr do?
Deliverr provided fulfillment technology that distributed merchant inventory across third-party warehouses, enabling 1-2 day delivery on orders placed through multiple e-commerce channels.
Why did Shopify acquire Deliverr?
Shopify acquired Deliverr to accelerate the build-out of its Shopify Fulfillment Network, adding owned logistics technology and warehouse relationships to compete with Amazon's fulfillment capabilities.
How much had Deliverr raised before the acquisition?
Deliverr had raised approximately $940 million in venture funding, including a $250 million Series E in early 2022 led by Tiger Global.
Was the Shopify Deliverr acquisition Shopify's largest deal?
Yes, the $2.1 billion acquisition was Shopify's largest acquisition at the time of announcement.
Sources
- news.shopify.com /shopify-and-deliverr-bring-fast-delivery-to-millions-of-merchants