Canadian e-commerce company Shopify (SHOP) has announced that it will buy U.S.-based
logistics firm Deliverr in a cash-and-stock deal valued at $2.1 billion U.S.
The acquisition is a move by Shopify to help mitigate supply chain snarls that have plagued the
global e-commerce sector.
U.S-listed shares of Shopify fell 14% in premarket trading on news of the Deliverr acquisition.
So far this year, the Ottawa-based company’s stock has declined 64% to finish trading in New
York yesterday at $485.49 U.S. per share.
Shopify helps merchants set up online shops and provides other services including delivery.
The company’s stock soared during the pandemic but has fallen steeply since last November.
To counter the decline, Shopify is ramping up investments to set up new warehouses in the U.S.
designed to deliver in two days or less and widen its delivery network to better compete with
rivals such as Amazon (AMZN).
Founded in 2017, Deliverr's logistics network delivers more than a million orders per month for
thousands of merchants across the U.S., the company said.
Separately, Shopify reported a 22% jump in its first-quarter revenue to $1.2 billion U.S., nearly
in line with analysts' average estimate of $1.24 billion U.S., according to Refinitiv data.
Gross Merchandise Volume (GMV), a widely watched metric for the e-commerce industry, was
up 16% at $43.2 billion U.S. in Q1 compared to a year-ago. However, that result was below Wall
Street's forecast of $45.43 billion U.S.
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