Target is acquiring Instacart competitor Shipt for $550 million to fight back against Amazon

From Recode: Another domino just fell in the wake of the Amazon-Whole Foods acquisition.

Target announced on Wednesday morning that it plans to make one of its biggest acquisitions in recent history by purchasing Shipt, a startup that delivers groceries on the same day customers place an order, for $550 million in cash.

Like its chief rival, Instacart, Shipt partners with a network of brick-and-mortar grocery chains to pick orders off of their shelves and deliver them to customer’s doors on the same day they are ordered.

Target plans to join the Shipt online marketplace, while Shipt intends to keep serving its other retail partners. Eventually, Target will offer the Shipt same-day delivery service on and the Target app.

Shipt customers pay $99 a year for unlimited deliveries from a selection of partners that include Harris Teeter, Meijer and Texas grocery giant H-E-B. The company operates in 72 U.S. cities currently, and has said it plans to be in 140 markets, including most major U.S. metro areas, by the end of next year.

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