Target recently announced that it has agreed to acquire Shipt Inc. -- a leading online same-day delivery platform -- for $550 million in cash. Target will leverage its network of stores and Shipt’s proprietary technology platform and community of shoppers to quickly and efficiently bring same-day delivery to guests across the country.

The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018. The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season.

Upon launch, Target will offer same-day delivery of groceries, essentials, electronics and home and other products while expanding the products offered over time. By the end of 2019, same-day delivery will include all major product categories at Target.

“We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it’s ordering online and picking up in one of our stores, driving up to pick up an order or taking advantage of services like our new Restock program. With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable, same-day delivery to guests across the country,” Target executive vice president and chief operating officer John Mulligan said. “By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests.”

Founded in 2014 and located in Birmingham, Ala., Shipt is a rapidly growing, membership-based grocery marketplace and same-day delivery platform. The service leverages an extensive network of more than 20,000 personal shoppers to fulfill orders from various retailers and deliver them within hours in more than 72 markets. Shipt values a personalized, customer-first delivery experience that simplifies life and saves time for members. Through Shipt’s app, members are connected to local, reliable shoppers who help facilitate a quality delivery experience that is personalized, efficient and convenient.

“We are very excited to partner with Target -- one of the most loved retailers in the country, with a reputation for supporting local communities. Partnering with Target and the national scale they provide allows Shipt to further accelerate our growth, bringing our service to more people in more markets across the country,” Shipt founder and chief executive officer Bill Smith said. "We’ll continue growing our marketplace and membership base, working with a variety of retailers to drive scale and efficiencies. We look forward to introducing Target guests to the convenience of our same-day delivery services, with the level of personal attention only Shipt can provide."

Shipt will be a wholly owned Target subsidiary and will continue to run its business independently. It also plans to expand partnerships with other retailers seeking same-day, last-mile capabilities.

The transaction is subject to customary closing conditions and is expected to close prior to the end of 2017.