Target plans to boost its same-day delivery capability by paying $550 million for Shipt, its latest move to try to catch up with Amazon.
Shipt delivers groceries to its members, who pay $99 a year. Target says it will add more products to the service. Target shoppers will have to make orders through Shipt’s app or website and pay the annual fee to get same-day delivery.
Retailers have been looking for ways to speed up delivery as they try to better compete with online shopping giant Amazon.com Inc. Earlier this year, Target bought a delivery logistics company to offer same-day delivery to in-store shoppers.
Minneapolis-based Target expects half of its 1,800 stores to offer Shipt by next summer.
The deal is expected to close before the end of the year.
