With yesterday's announcement that Flexport, the leading tech-driven logistics platform, has acquired the assets of Shopify Logistics, including Deliverr, Jeff Berman, Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review, spoke in-depth with Parisa Sadrzadeh, Flexport SVP of SMB Product & Technology, and Ben Gordon, founder and managing partner of Cambridge Capital, and managing partner of Ben Gordon Strategic Advisors.
Sadrzadeh and Ben Gordon provide their view of the acquisition and the implications of integrating Shopify Logistics' to expand Flexports global services into last-mile and e-commerce fulfillment solutions.
Dave Clark, CEO of Flexport emphasized how the acquisition of Shopify Logistics and Deliverr will help Flexport “to level the playing field for small business,” observing how in the U.S., where the e-commerce market size is pegged to the top $8 trillion in 2026, one out of every four small businesses in the U.S. lack an online store presence, leaving them on the sidelines.
Clark stated, 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 e-commerce fulfillment and last-mile capabilities.
Parisa Sadrzadeh, Flexport SVP of SMB Product & Technology, told Logistics Management that Flexport’s goal with this acquisition is to create a single system for end-to-end supply chain planning, visibility, and execution.
“The acquisition of Shopify Logistics and Deliverr will now enable our customers to optimize the movement of goods from manufacturer to the customer’s doorstep under one unified technology platform,” she said.
“Shopify has been a strategic partner and investor since it participated in Flexport’s Series E funding round in early 2022. Since then, we’ve worked in close partnership to build supply chain solutions for Shopify merchants - and small businesses in particular - through products like the Flexport App on Shopify. This is a natural next step.”
As for the key benefits of this acquisition for Flexport’s customers, Sadrzadeh said that Flexport's customers will now all have end-to-end supply chain planning, visibility, and execution to help reduce out-of-stocks and improve reliability for customers, reduce their costs, and decrease the environmental impact of the movement of goods.
“Ultimately, the integration will help Flexport level the playing field for cost and speed of delivery for businesses of all sizes, not just the largest corporations in the world,” she noted.
Setting Up a Strategy to Compete with Amazon.
“The real competitive advantage is for Flexport’s customers as we’re able to offer more robust, end-to-end supply chain solutions. Flexport and Shopify customers will also gain access to a fast, flexible, and affordable logistics network that seamlessly integrates with Shopify - and eventually all major e-commerce marketplaces.”
Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of Ben Gordon Strategic Advisors, told Logistics Management that he believes Flexport is setting up a strategy to compete with Amazon.
“This is a return of the Jedi moment, as Flexport new CEO Dave Clark prepares to fight his prior employer,” said Gordon.
“Also, note that Flexport paid using about 12% of its equity. This is a smart structure for venture-funded companies that raised billions at high valuations in the 2020-2021 timeframe.”
Jeff Berman, Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review.
Flexport, the leading tech-driven logistics platform, has announced the acquisition of the assets of Shopify Logistics, including Deliverr, Inc.
Flexport's technology now makes it easy for businesses to plan, visualize and execute the movement of goods from the manufacturer to the customer's store or door unified under one technology platform.
Through the integration of Shopify Logistics, Flexport will strengthen its advanced AI-driven optimization to streamline the full global supply chain, reducing costs and improving customer reliability.
Traditional supply chain technology has failed to create a single system for end-to-end supply chain planning, visibility, and execution. Flexport intends to change all that, reducing out-of-stock for customers, and costs for companies, and decreasing the environmental impact of the movement of goods.
"For Flexport, this acquisition enables our vision for a full digital transformation of the global supply chain that we will bring to all customers. This democratization and pooling of scale will level the playing field for cost and speed of delivery for all businesses, not just the largest corporations in the world," said Dave Clark, CEO of Flexport.
"The end-to-end supply chain industry has not undergone the technological breakthroughs and data platforming we have seen in other sectors. Flexport is changing that. After several years of public discourse focusing on what's wrong with the supply chain, it's exciting to look ahead to how Flexport can bring solutions and make the global supply chain better for everyone."
Flexport will also become the official Shopify Logistics Partner and provider of Shop Promise for millions of Shopify merchants. Shop Promise enables transparent shipping timelines, including two-day and next-day delivery options to customers of Shopify merchants, and will be extensible to all major commerce platforms.
These services will be powered by Flexport and available on the merchant-facing Shopify Fulfillment Network app, which offers merchants an integrated logistics experience through Shopify.
"A key part of the success of Shopify Logistics to date has been our mission-aligned and deeply knowledgeable partner, Flexport," said Tobi Lütke, founder and CEO of Shopify.
"The acquisition will enable Flexport and Shopify to carry the merchant-centered logistics vision forward, and give more businesses access to a fast, flexible, and affordable logistics network that seamlessly integrates with the Shopify tools they know and love."
"Following in the spirit of our partners at Shopify, Flexport has built technology solutions on top of a global, diverse network of logistics partners to make the world simpler for merchants and enterprises selling across all their channels around the world. With this acquisition, we will deepen and expand these partnerships, providing all merchants and businesses more opportunities to grow and succeed because their success is our success," Clark added.
The company expects the deal to close in the second quarter subject to customary closing conditions, including the receipt of regulatory approvals.
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 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 e-commerce 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 with 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 of 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!
CEO of Flexport
About Dave Clark, CEO of Flexport | Previously Dave spent 23 years at Amazon, where he held a variety of senior leadership positions prior to becoming the CEO of its Worldwide Consumer division. Dave graduated with an MBA from the University of Tennessee and holds a Bachelor's Degree from Auburn University.