Shopify buys 6 River Systems for $450M to grow its fulfillment network
Category: #business  By Pankaj Singh  Date: 2019-09-10
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Shopify buys 6 River Systems for $450M to grow its fulfillment network
  • Acquisition of 6 River Systems seems to be an attempt to accelerate the growth in delivery of daily packages.
  • The deal would further expand the reach of the Shopify Fulfillment Network, which utilizes machine learning to ensure lower shipping costs and timely deliveries.

Shopify, an e-commerce company based in Canada and headquartered in Ottawa, Ontario, reportedly announced the acquisition of 6 River Systems, a startup that works on fulfillment automation for retail and e-commerce operations. Shopify acquired 6 River Systems for approximately $450 million; 40% in shares and 60% in cash.

Shopify had reportedly announced the Shopify Fulfillment Network, which utilizes machine learning to ensure lower shipping costs and timely deliveries in June. The company’s fulfillment centers span Georgia, California, New Jersey, Ohio, Nevada, Texas and Pennsylvania.

The network of Shopify, which is available in early access only, helps merchants who deliver between 10 to 10,000 packages every day. The company expects to eventually support merchants shipping 3 to 30,000 packages every day. Acquisition of 6 River Systems seems to be an attempt to accelerate that growth.

Tobi Lütke, CEO of Shopify stated that the company is looking at fulfillment the same way it has addressed other commerce challenges, integrating the best technology so that it would help everyone compete. Tobi added that with 6 River Systems, Shopify will bring operational and technological efficiencies to organizations of all sizes across the globe.

6 River Systems is well known for its autonomous Chuck vehicles, which move packages around in warehouses. Shopify believes that integrating robots to its AI-powered fulfillment network would increase the reliability and speed of warehouse operations, especially by empowering on-site employees with everyday tasks, including picking, inventory replenishment, packing and sorting.

6 River Systems is based in Waltham, Massachusetts and was founded by Chris Cacioppo, Jerome Dubois and Rylan Hamilton. The company has raised a total funding of $46 million from Norwest Venture Partners, Menlo Ventures, Eclipse Ventures and iRobot. The proposed acquisition has already been approved by stockholders of 6 River Systems.

Source credit: https://venturebeat.com/2019/09/09/shopify-acquires-6-river-systems-for-450-million-to-expand-its-ai-powered-fulfillment-network/

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About Author

Pankaj Singh    

Pankaj Singh

With an experience as an insurance underwriter and a freelance writer under his belt, Pankaj Singh boasts of quite some expertise in the field of content creation. A qualified Post Graduate in Management, Pankaj has also completed a detailed course in Digital Marketin...

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