Flexport acquires Shopify Logistics

November 16, 2023

Flexport has acquired the assets of Shopify Logistics, including Deliverr Inc. The integration of Shopify Logistics into Flexport's technology aims to simplify the planning, visualization, and execution of goods movement from manufacturer to customer, all unified under one platform. This move enhances Flexport's AI-driven optimization, improving the efficiency of the global supply chain, reducing costs, and enhancing reliability for customers. The integration addresses challenges in traditional supply chain technology, offering a comprehensive solution for end-to-end planning, visibility, and execution, ultimately minimizing out-of-stocks, reducing costs, and lessening the environmental impact of goods movement. With this acquisition, Flexport aims to realize its vision of a comprehensive digital transformation of the global supply chain accessible to all customers. The goal is to democratize and scale resources, leveling the playing field for cost and delivery speed across businesses of all sizes. Flexport's CEO, Dave Clark, emphasizes the need for technological breakthroughs in the end-to-end supply chain industry, positioning Flexport as a catalyst for change. The company aims to address existing challenges and contribute to the improvement of the global supply chain for the benefit of all stakeholders.

As part of the acquisition, Flexport will take on the role of the official Shopify Logistics Partner and the provider of Shop Promise for millions of Shopify merchants. Shop Promise offers transparent shipping timelines, featuring options like two-day and next-day delivery for customers of Shopify merchants. Flexport will power these services, and they will be accessible through the merchant-facing Shopify Fulfillment Network app, providing an integrated logistics experience for Shopify merchants. Tobi Lütke, founder and CEO of Shopify, emphasized the integral role of Flexport as a mission-aligned and deeply knowledgeable partner in the success of Shopify Logistics. The announcement today paves the way for Flexport and Shopify to advance their merchant-centered logistics vision, providing more businesses with access to a fast, flexible, and affordable logistics network seamlessly integrated with the familiar Shopify tools.The company anticipates the completion of the deal in the second quarter, pending customary closing conditions and regulatory approvals.

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