FedEx has agreed to acquire Chicago-based e-commerce company ShopRunner, a platform led by local entrepreneur and investor Sam Yagan that offers users free two-day shipping on over 100 brands.
FedEx announced Wednesday that it's acquiring ShopRunner in a deal that looks to expand FedEx's e-commerce business and create "end-to-end shopping experiences" for customers. Terms of the deal were not disclosed, and the acquisition is expected to close by the end of the year.
ShopRunner will operate as a subsidiary of FedEx Services, the company said in a news release.
Founded in 2010, ShopRunner provides retailers and their customers two-day shipping on merchandise. It was built on the premise to be an e-commerce shipping alternative to Amazon Prime. It offers items from more than 100 retailers, including Neiman Marcus, Sunglass Hut and Brooks Brothers. ShopRunner CFO Ozan Kaya told Chicago Inno last year that the company has “millions” of members, a number that is growing by about 40% year over year. Memberships cost $79.
ShopRunner was acquired by Kynetic, a tech company led by entrepreneur Michael Rubin that also owns Fanatics and Rue Gilt Groupe, in 2011. Yagan joined as CEO in 2016, which was when the company moved its headquarters from California to Chicago. Yagan is the founder of OKCupid and leads Chicago VC firm Corazon Capital.
The ShopRunner acquisition aims to expand FedEx's e-commerce portfolio and create an end-to-end commerce experience for users, the company said.
"The unparalleled reach and assets of FedEx will accelerate our existing capabilities and align with our goal of creating new products and services that advance a more open, collaborative e-commerce ecosystem," Yagan said in a statement.
