Global logistics company Flexport has acquired Shopify Logistics, adding eCommerce fulfillment, B2B distribution and last-mile delivery to the company’s portfolio of services.
The deal made Flexport the official Shopify Logistics Partner and preferred Shop Promise provider, enabling transparent shipping timelines, including two-day and next-day delivery options to customers.
Flexport CEO Dave Clark said the acquisition is expected to streamline global supply chain operations, “democratizing and leveling the playing field of cost and speed of delivery for all businesses.” It will also offer “3-million-square-feet of warehouse space to support merchants during the upcoming holiday season.”
The last-mile delivery market is projected to reach over $357.45 billion by 2031, as trade activity between cities and neighboring nations is projected to promote market expansion for last-mile delivery services. This is also due in part to an increase in demand for parcel delivery due to increasing eCommerce sales in developing nations.
Developed countries like the U.S. and Canada and countries in the Asia Pacific Region are also expected to grab a huge share of last-mile delivery revenue. “This is attributable to the growing need for customized workflow, automation, and simplifying complex operational processes, which have greatly influenced how firms conduct their operations,” according to InsighAce Analytic.
Shopify announced the sale of its logistics operations to Flexport on May 4, saying it was shifting back to basics — a focus on eCommerce — and relying more fully on partners to get the goods to customers’ doorsteps.
The firm already had a relationship with Flexport that enabled merchants’ products to be shipped from overseas manufacturers to U.S. ports.
The supply chain snags seen over the past few years have made stakeholders more willing to improve their processes, Flexport Chief Financial Officer Kenny Wagers told PYMNTS’ Karen Webster in an interview posted in December 2022.
“The human aspect, the manual portion of [data entry and invoicing] has had to be reinvented over the past few years in the freight industry,” Wagers said at the time.
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