FedEx agrees to buy ShopRunner in e-commerce push
FedEx is buying e-commerce player Shoprunner with an eye on linking-up the e-commerce experience and competing with major players in the space
FedEx Corp. (NYSE: FDX) is to acquire ShopRunner, a retail logistics solution and e-commerce platform.
Within the Shoprunner platform consumers pay a $79 subscription to access two-day shipping, free returns member-exclusive discounts, and checkout to more than 100 brands, including Hudson’s Bay Company, Kate Spade & Company, Under Armour, CB2, Cole Haan, and American Eagle Outfitters.
In a press release, FedEx said it expects the acquisition to close by the end of the calendar year, subject to closing conditions and regulatory approval, but this had not been confirmed as completed at the time of writing.
Headquartered in Chicago, ShopRunner will operate as a subsidiary of FedEx Services, which oversees the logistics giant’s sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and some of the back-office functions that support their transportation elements.
an organization dedicated to integrating the technology and services customers need to create solutions for global supply chains, e-commerce, and today’s business challenges.
The play is seen as a move to close the distance to leading e-commerce players, particularly Amazon, as ShopRunner fills a gap between FedEx’s core business and the online shopping space, as well as providing a source of data in merchants and consumers.
“The acquisition, once closed, aligns with our continued efforts to create an open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers,” said Raj Subramaniam, president and chief operating officer, FedEx Corporation. “We are committed to growing the ShopRunner platform and combining it with our global digital and logistics intelligence to create new possibilities in e-commerce.”
Sam Yagan, CEO of ShopRunner, 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.”