Target to buy Shipt for US$550m as it steps up challenge to Amazon

New York

TARGET agreed to purchase grocery-delivery startup Shipt for US$550 million, stepping up its challenge to Amazon.com by speeding the rollout of same-day shipping.

The all-cash deal will let Target customers order groceries and other goods online, and then have the items sent directly to their doors from nearby Target stores.

Buying Shipt further beefs up Target's logistics operations after the retailer earlier this year acquired software company Grand Junction, which also manages local and same-day deliveries. Target now offers same-day delivery in New York City and can send orders from 1,400 of its stores.

Competition in this space is growing fiercer though, as rivals Wal…