Shopify is considering buying San Francisco startup Deliverr for at least $2 billion, according to a report from Bloomberg News.
Deliverr provides e-commerce merchants logistics support to help them get products delivered to customers within two days, an incredibly fast standard set by Amazon over the past several years.
The startup announced a $250 million Series E round in November that was led by Tiger Global and valued the company at $2 billion, more than double its previous valuation in early 2021.
This would be Shopify's largest acquisition, according to Bloomberg News, and "a small step in the right direction" for Shopify, a Bloomberg Intelligence analyst wrote in a note.
“Unlike Amazon, Shopify doesn’t own large distribution centers and depends on third-party companies to provide faster shipping to its merchants," the analyst continued.
On Wednesday, Shopify stock closed down more than 13% but rose back up about 2% after hours. The stock is down almost 65% over the past six months.
Deliverr was founded in 2017 by CEO Harish Abbott and Michael Krakaris and has raised more than $490 million total, according to Crunchbase.
Neither company responded to a request for comment.
