---
title: "CNBC: Target to Buy Grocery Delivery Service Shipt for $550 Million"
url: https://burnaze.com/article/f324497a-56d0-4120-8ce5-e27c248fcc8c
source: "1851 Franchise"
original_url: https://1851franchise.com/cnbc-target-to-buy-grocery-delivery-service-shipt-for-550-million-2705023
category: "Grocery"
industry: "Retail"
segment: "Grocery"
topics: ["Finance & M&A"]
published: 2017-12-14T22:17:33.000Z
modified: 2026-11-01T04:10:08.313Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/f5675869a7829f27aa7ff7f89bf94ed17542.jpg
---

# CNBC: Target to Buy Grocery Delivery Service Shipt for $550 Million

**TL;DR:** Target is acquiring Shipt, a same-day delivery service platform, for $550 million to enhance its online shopping capabilities. Target will offer same-day delivery for groceries, electronics, and home furnishings from Shipt early next year.

*originally published in 1851 Franchise on 2017-12-14. [Read the original](https://1851franchise.com/cnbc-target-to-buy-grocery-delivery-service-shipt-for-550-million-2705023).*

## Story

Target is betting on a lot more online shopping from its customers. According to a recent CNBC article, the company is planning to acquire same-day delivery service platform Shipt for $550 million. After big announcements from Amazon and Walmart this year, Target hopes to compete in the industry of quick delivery, including groceries.

"With Shipt's network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country," said Target Chief Operating Officer, John Mulligan.

Early next year, Target will be offering same-day delivery for groceries, electronics and home furnishings from Shipt and customers will need to pay an annual $99 fee. But despite being owned by Target, Shipt will offer its services to other retailers like Costo and Kroger.

## Entities

- 1851 Franchise (publication)
- Retail (sector)
- acquisition (topic)
- Amazon (company)
- Walmart (company)
- Target (company)
- Kroger (company)
- Costco (company)
- online shopping (topic)
- grocery delivery (topic)
- same-day delivery (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/cnbc-target-to-buy-grocery-delivery-service-shipt-for-550-million-2705023). Summarized by Burnaze (https://burnaze.com/article/f324497a-56d0-4120-8ce5-e27c248fcc8c).