Target acquires Alabama grocery delivery service Shipt for $550M

Cropped Photo: Mike Mozart / CC BY 2.0

Major retailer Target has purchased an Alabama app-based grocery delivery company, and it will allow Target to have same-day delivery at approximately half its stores.

Posted: Dec 14, 2017 4:10 PM

Birmingham-based online grocery delivery company Shipt is now under new ownership after owners sold the app-based service from $550 million.

Target purchased the company to help improve its goals to expand its same-day delivery capabilities at its stores. The company now says it will be able to provide these services at half of its locations by early 2018 while a majority of stores should have the service by the next holiday season.

The rapidly-growing Shipt has increased its presence into the Tennessee Valley. The company currently allows Huntsville customers to purchase Publix or Kroger groceries. Target says Shipt will continue to operate as a wholly-owned subsidiary, but it is unknown if Shipt will become a Target-exclusive delivery provider.

Shipt currently employs more than 20,000 shoppers who deliver groceries to customers as soon as an hour after the order is placed.

The purchase is expected to close before the end of the month.

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