Great news for bullseye fans: Target just acquired Shipt, a grocery delivery service, that will allow the retailer to bring same day delivery to nearly half of its stores by early next year.
The Minnesota-based retailer announced the acquisition today on their corporate blog, including that they bought the online company for $550 million in cash. And it looks like Shipt's membership-based, Instacart-esque model—where one person shops your items and then another delivers them within a selected window—will be available at the majority of stores by fall 2018—just in time for the holidays. Here's exactly what they had to say:
Target will leverage its network of stores and Shipt's proprietary technology platform and community of shoppers to quickly and efficiently bring same-day delivery to guests across the country. The acquisition significantly accelerates Target's digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season.
Same day delivery will be available for groceries, essentials, home, electronics and other products, with "all major product categories at Target" available by the end of 2019.
As for Shipt, it "will be a wholly owned Target subsidiary, and will continue to run its business independently," the announcement reads. "It also plans to expand partnerships with other retailers seeking same-day, last-mile capabilities." Shipt currently comes with a membership fee of $99 annually, so it remains to be seen whether customers will shell out for the service, especially if they already have Amazon Prime.