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MAY 4, 2023

Dave Clark, CEO of Flexport, writes:

I have some big news to share today. Flexport is acquiring the assets of Shopify Logistics, including Deliverr. This is an exciting time for Flexport. This acquisition is the last piece of the puzzle that enables us to drive technology fueled solutions across the entire product life cycle from the manufacturer’s floor, across the oceans and skies, through ports and fulfillment, and, now, right into the hands of customers.

The shipping industry has not experienced the same technological revolution that we see across other sectors, and I came to Flexport specifically because I know this team is changing that. We are digitizing and evolving one of the most important parts of the world’s economy – global trade. And I believe in our teams to deliver – democratizing the supply chain for businesses of all sizes on our mission to make global trade easy for everyone.

Over the past six months, we’ve taken some important strategic steps, building off of the amazing momentum Flexport has had, to position the company to achieve our audacious goals. We’ve built a strong leadership bench with some of the best logisticians, technologists, and operators in the world. We are also heavily invested in hiring hundreds of software engineers who are joining our existing teams with a passion for rapidly building for customers. Across all our teams, we have the talent, focus, vision and the tenacity at Flexport to change the world.

Today’s announcement is one big step on an already incredible journey that Flexport is taking to modernize and change the future of the supply chain. Another central goal for us is to level the playing field for small businesses. In the U.S., in a world where the e-commerce market size is poised to surpass $8 trillion in 2026, one-in-four small businesses in America still do not have an online store. This is a massive number of companies on the sidelines. We want to welcome them into the e-commerce ecosystem and support their supply chain needs; you shouldn’t have to be the biggest company in the world to have easy, cost-effective and fast supply chain solutions. And we know, fast, cost-effective fulfillment operations have a dramatic impact on the fate of small businesses. When shoppers abandon their carts online, 48% do so because of extra fees (e.g., shipping costs), and another 22% cite slow delivery timelines. We are going to help fix that as we continue to bring incredible ocean, air, trucking, and middle mile services to clients plus the addition of ecommerce fulfillment and last mile capabilities.

To that end, this acquisition also makes us the primary provider of Shop Promise for Shopify merchants, which enables transparent shipping timelines to Shopify customers, including two-day and next-day delivery options. These services will be powered by Flexport in the merchant-facing Shopify Fulfillment Network app, which provides merchants an integrated logistics experience through Shopify. But we aren’t stopping there. We are ready to provide these same services to all customers as we work to bring technology and operational excellence to all the businesses we serve across the full, end-to-end supply chain.

Flexport is set up for success as we fold Shopify Logistics into our operations once the deal officially closes in the coming weeks. This integration will include Harish Abbott, Co-Founder and CEO of Deliverr, who will report directly to me once we close ensuring a smooth transition that enables our customers to get access to Deliverr’s capabilities as soon as possible.

I couldn’t be more optimistic about the future for Flexport. When I joined the company, I said I wanted to help build cool things for customers with a cool group of people who have the ambition to change the world for the better, and we’re off and running! After the past several years of public discourse focusing on what’s wrong with the supply chain, it’s exciting to look ahead to how we can bring solutions to the table. For now, nothing changes in our roadmaps as we await the deal to close. Let’s keep building and have some fun!


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