Target plans to offer same-day delivery in all major markets by 2018 holiday season
The retailer acquired delivery platform Shipt, which utilizes the services of over 20,000 personal shoppers.
America’s second largest retailer, Target, will bring same-day delivery services to shoppers at around half of its stores by early 2018, after announcing its $550 million acquisition of online delivery platform Shipt.
Target plans to quickly leverage the purchase by enhancing digital efforts to bring Shipt services to the majority of Target stores in all major markets before the beginning of next year’s busy holiday shopping season.
Target said it will offer same-day delivery of groceries, essentials, home, electronics and other products.
Target’s ambition for Shipt is to boost market penetration and expand the number of products available for delivery over time. By the close of 2019, all major product categories will be included for same-day delivery.
Alabama-based Shipt launched in 2014 and has a fast-growing membership base. The service utilizes a network of more than 20,000 personal shoppers to fulfill orders from various retailers across 72 U.S. markets.
Shipt will be a wholly owned Target subsidiary, and will continue to run independently. The company plans to grow its partnerships with other retailers seeking same-day delivery capabilities. That means, for now, Target customers will need to download the Shipt app and pay a $99 membership fee to exploit the unlimited service.
About three years ago, Target teamed with rival delivery company Instacart. However, the extent of that partnership was relatively low-scale. Target hasn’t yet discussed or revealed its future plans with Instacart.
Amazon acquired Whole Foods in August this year for $13.7 billion and is working to bolster resources and enhance the partnership, in-store and online. In November, the online retailer notified customers in at least nine different US states that their Amazon Fresh delivery service would no longer be available in certain areas.
Business owners can now take advantage of Amazon Business Prime Shipping, as the e-commerce company began offering free unlimited two-day shipping in October for customers with an Amazon Business account.
Convenience is important and delivery services are growing. Earlier this year, Walmart and online marketplace Google Express joined forces to offer customers voice shopping capabilities to compete with rival Amazon.
Last week, American fast-food chain Pizza Hut began offering beer delivery sales from one of its downtown restaurant’s in Phoenix, Arizona. This service is part of a larger trial set to expand to other markets in 2018.
In August, Ford and Dominos partnered to test an autonomous pizza delivery system in Ann Arbor, Michigan. Delivering up to four pizzas and five sides, cars are code-locked to deter any potential pizza-jacking en route.
The number of McDonald’s stores in the United States offering delivery will rise to 5,000 by the close of 2017.
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