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Target acquires Shipt for $550M to bring you same-day delivery

The retail giant says Shipt's platform will help bring same-day delivery to approximately half of Target stores by early 2018.

Target Corp. Reported A 4 percent increase in second-quarter profits

Target is trying to boost its delivery chops.

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Target hopes same-day delivery will be enough to lure you away from the likes of Walmart and Amazon.

On Wednesday, the retail giant said it's acquiring online grocery delivery company Shipt for $550 million. Target will use the startup's technology and platform to bring same-day delivery to approximately half its stores by early 2018, the company said in a press release.

The move could help Target compete against Walmart and Amazon, which are both working on offering faster shipping to customers. In August, Target acquired Grand Junction, a transportation tech company, to expand its delivery capabilities.

In a blog Wednesday, Target Chief Operating Officer John Mulligan said the Shipt acquisition will mark an important milestone in Target's strategy, which includes making "shopping at Target easier, more reliable and more convenient for our guests."

"By acquiring Shipt, we'll be able to take advantage of our network of stores and Shipt's technology platform and shopper community to quickly offer same-day delivery to millions of our guests," Mulligan said. Target declined to comment beyond its press release.

Shipt didn't immediately respond to a request for more information.

At launch, Target said it will offer same-day delivery on groceries, essential electronics and home products. The retailer plans to expand the service to all stores before the end of 2018 and will offer same-day delivery on all major product categories by the end of 2019.

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