Canadian startup Shopify is taking the e-commerce scene by storm.
The company has quickly become the most popular online shopping destination, second only to Amazon, thanks to an astronomical increase of its shares in the past year. So far this year, stock has soared 160% with revenue coming in at $362 million during its last quarter.
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Data also shows the platform recently overtook competitor eBay, once a powerhouse in this space, in terms of quarterly sales. Shopify, which trades on the New York Stock Exchange (NYSE) under the ticker $SHOP, went public in 2015 and has been growing consistently since. As Forbes recently reported, the stock’s jump has also helped increase founder and CEO Tobias Lütke’s personal network; it has doubled to $3.2 billion in the past six months.
However, the Ontario-based company has no plans of slowing down anytime soon.
Shopify announced its latest acquisition on Monday, stating it’s purchased shipping fulfillment startup 6 River Systems for $450 million. The acquisition is its next step in building out its shipping infrastructure in order to compete harder with powerhouse Amazon.
“Shopify is taking on fulfillment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete,” said Lütke in a released statement. “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
Shopify also specifically noted its recruitment of experts in the fulfillment space via the 6 River acquisition.
“With the acquisition of 6 River Systems, Shopify will add a team with decades of experience in fulfillment software and robotics, including experienced leaders from Kiva Systems (now Amazon Robotics),” the company stated. “Adding 6 River Systems’ cloud-based software and collaborative mobile robots called ‘Chuck’ to the Shopify Fulfillment Network will increase the speed and reliability of warehouse operations, by empowering on-site associates with daily tasks, including inventory replenishment, picking, sorting and packing.”
Shopify’s scaling strategy also coincides with similar approaches by traditional retailers, such as Walmart and Target, attempting to catch up with Amazon’s dominant e-commerce position.