Shopify is selling its logistics unit to supply chain technology company Flexport, the companies announced Thursday.
The sale marks a reversal for Shopify, which had spent years building out its own logistics and order-fulfillment operations. The unit includes last-mile delivery startup Deliverr, which Shopify purchased last May for $2.1 billion, its largest acquisition ever.
As part of the agreement, Shopify will receive stock that represents a roughly 13% equity interest in Flexport, “bringing us to a high-teens ownership,” the company said in a statement.
Shopify and Flexport are deepening their alliance as Shopify seeks to compete with e-commerce rivals such as Amazon and Walmart. The companies announced a partnership in February that gives Shopify merchants access to Flexport’s freight services, including booking international shipments from suppliers to their warehouses. Flexport also counts Shopify as an investor.
Shopify president Harley Finkelstein said in an interview that after going on a “side quest” to develop the company’s own fulfillment and logistics businesses, …