Flexport is expanding its e-commerce fulfillment operations as it aims its freight-forwarding business more directly at retailers. The Wall Street Journal reports the digital-focused operator is buying Shopify’s logistics business, including the Deliverr technology platform and dozens of warehouses and sorting centers.
The transaction sets up Flexport as a potential rival to Amazon for fulfillment services for merchants that sell goods online.
That’s familiar territory for Flexport CEO Dave Clark, the former Amazon executive who spearheaded the e-commerce market leader’s enormous expansion of its logistics network.
With the sale of Deliverr and of warehouse robotics company 6 River Systems to U.K. online grocer Ocado, Shopify is effectively abandoning efforts to stand up its own logistics operation. Clark says Flexport’s logistics service now will allow merchants to handle imports and last-mile delivery through one platform, and to fulfill orders through their own websites and stores.
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