Courier services provider FedEx agreed on Wednesday to buy ShopRunner, a US-based e-commerce platform backed by China-based e-commerce company Alibaba and payment services firm American Express, for an undisclosed amount.
The deal is expected to wrap up by the end of 2020, after which ShopRunner will operate as a subsidiary of FedEx’s corporate services division, FedEx Services.
ShopRunner’s e-commerce platform provides access to more than 100 retail brands through a membership scheme that offers two-day shipping, free returns and exclusive discounts. It closed a $40m growth round in late 2018 led by $30m from venture capital firm August Capital.
Alibaba invested $75m to lead a $206m funding round for the company in 2013 that included American Express, at a reported $600m valuation, with online marketplace platform eBay selling a 30% stake in the company as part of the deal, according to the Wall Street Journal.
Sam Yagan, ShopRunner’s CEO, said: “In pursuit of our purpose of creating the future of retail, we have built the foundation of a cross-brand ecosystem to create a simple shopping experience for consumers and to aggregate the scale of our network for our partners’ benefit.
“The unparalleled reach and assets of FedEx will accelerate our existing capabilities and align with our goal of creating new products and services that advance a more open, collaborative e-commerce ecosystem.”