We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Flexport buys Shopify Logistics in move to build single source fulfilment hub

Flexport buys Shopify Logistics in move to build single source fulfilment hub

Shopify plans to sharpen focus on commerce, saying the dawn of the AI era unlocks new capabilities.

flexport HP-3-R2.jpeg
May 4, 2023
Ben Ames
No Comments

The logistics platform provider Flexport has acquired Shopify Logistics, including its  Deliverr unit, saying the move makes it easy for businesses to plan, visualize, and execute the movement of goods from manufacturer to the customer's store or door from a single technology platform.

Terms of the deal were not disclosed, but the 10-year-old San Francisco startup is richly backed with venture capital, having raised a whopping $935 million round of funding one year ago. Flexport also added seasoned leadership when it hired logistics guru Dave Clark from e-commerce leviathan Amazon as its CEO.

In Flexport’s vision, traditional supply chain technology has failed to create a single system for end-to-end supply chain planning, visibility and execution. The company says it now intends to change all that, reducing out-of-stocks for customers, costs for companies, and decreasing the environmental impact of the movement of goods.

"For Flexport, this acquisition enables our vision for a full digital transformation of the global supply chain that we will bring to all customers. This democratization and pooling of scale will level the playing field for cost and speed of delivery for all businesses, not just the largest corporations in the world," Flexport CEO Dave Clark said in a release. "The end-to-end supply chain industry has not undergone the technological breakthroughs and data platforming we have seen in other sectors. Flexport is changing that. After the past several years of public discourse focusing on what's wrong with the supply chain, it's exciting to look ahead to how Flexport can bring solutions and make the global supply chain better for everyone."

As part of the acquisition, Flexport will also serve the millions of Shopify merchants by becoming the official Shopify Logistics Partner and provider of Shop Promise, the service that enables transparent shipping timelines, including two-day and next-day delivery options, to customers of Shopify merchants. 

From Shopify’s point of view, the move will shrink the company by 20% as many employees leave the company through downsizing or the shift to a new employer.

In a message to staff, Shopify founder and CEO Tobi Lütke offered a severance package to those losing their positions, and said that those who remained would see the company shift its focus “to pay unshared attention to our mission” by following its main quest instead of a side quest.

“Shopify’s main quest is to make commerce simpler, easier, more democratized, more participatory, and more common. I think that we have built the best commerce platform in the world for that,” Lütke said. “Technological progress always arcs towards simplicity, and entrepreneurs succeed more when we simplify. But now we are at the dawn of the AI era and the new capabilities that are unlocked by that are unprecedented. Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers. A copilot for entrepreneurship is now possible. Our main quest demands from us to build the best thing that is now possible, and that has just changed entirely.”

 

 

E-Commerce Logistics Services
KEYWORDS Flexport Shopify
    • Related Articles

      Softeon acquires GetUsROI in move to build more links to warehouse automation

      Flexport lands enormous $935 million backing for freight forwarding platform

      FedEx extends Microsoft partnership to build “logistics as a service” product

    Benames
    Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

    Recent Articles by Ben Ames

    CMA CGM revenue plunged more than 30% as spot freight rates plunged in Q1

    Redwood Logistics expands Mexico footprint as nearshoring trend gains steam

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing