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Yes, Target owns Shipt. Target acquired Shipt in December 2017 for approximately $550 million. The acquisition transformed Shipt from a regional grocery delivery startup into the same-day delivery backbone of one of America’s biggest retailers. This guide walks through the full timeline, why Target made the move, what changed for customers, and what stayed the same.

For broader Shipt context, see Is Shipt Worth It?.

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What’s in this guide

The short answer

Shipt is a wholly owned subsidiary of Target Corporation (NYSE: TGT). Target acquired Shipt in December 2017 in an all-cash deal worth approximately $550 million. Shipt continues to operate as a brand and platform serving 100+ retailers, but its strategic priority and resource allocation are aligned with Target.

Timeline — Shipt’s history

  • 2014: Shipt founded by Bill Smith in Birmingham, Alabama. Initially served as a same-day grocery delivery service for Publix and Winn-Dixie in southern markets.
  • 2014-2017: Rapid growth. Expanded to other retailers, raised venture funding from Greycroft, Harbert Growth Partners, and others.
  • December 2017: Target acquires Shipt for $550M cash. Bill Smith remains as CEO of Shipt subsidiary.
  • 2018-2019: Shipt rolled out at all Target stores nationwide, becoming Target’s same-day delivery backbone.
  • 2020-2021: Pandemic accelerated grocery delivery adoption; Shipt grew rapidly. Added retailers including Costco, CVS, Petco.
  • 2022: Shipt founder Bill Smith departed.
  • 2023-2024: Shipt continues expansion of retailer partnerships and SNAP/EBT support.
  • 2025-2026: Integration with Target Circle 360 (Target’s paid loyalty program) tightens.

Why Target bought Shipt

Strategic reasons for Target’s acquisition:

  1. Same-day delivery moat: Walmart and Amazon were aggressive on grocery; Target needed a delivery platform fast.
  2. In-house vs. third-party: Building same-day delivery from scratch would have taken Target 3-5 years; buying Shipt accelerated by years.
  3. Retailer relationships: Shipt’s existing partnerships with Publix, Costco, etc. gave Target leverage; Target controls the platform Shipt’s competitors use.
  4. Customer data: Same-day grocery customers are high-value; Shipt brought millions of recurring customers.
  5. Member economics: Shipt’s $99/year membership model fits Target’s loyalty playbook.

In retrospect, the acquisition was strategically sound: it accelerated Target’s grocery delivery offering during the period (2018-2022) when grocery delivery exploded.

What changed after the acquisition

For customers:

  • Target became Shipt’s deepest retailer integration — pricing parity, full inventory, Target Circle integration.
  • Same-day delivery at all Target stores rolled out nationwide.
  • Target RedCard 5% discount applies on Target items via Shipt.
  • Target Circle 360 became a way to bundle Shipt with Target loyalty.
  • More retailer partners added post-acquisition (Costco, CVS, Petco, etc.).

For shoppers:

  • Shopper base grew significantly.
  • More order volume = more earning opportunity.
  • Pay structures evolved over time.

For competitors:

  • Some pre-acquisition retailers continue working with Shipt (Publix, HEB) despite Shipt’s Target ownership — separation between Shipt platform and Target the retailer.
  • Some retailers shifted to Instacart or DoorDash post-acquisition due to competitive concerns.

What stayed the same

  • Shipt brand remains. Customers still order through Shipt.com or the Shipt app.
  • Personal shopper model — Shipt’s “your shopper” relationship persists.
  • Same-day delivery commitment — core value proposition.
  • Membership model — $99/year unlimited delivery (or $4.99/month for SNAP recipients).
  • Independent retailer relationships — Publix, HEB, etc. continue to be served by Shipt.

Shipt today: Target subsidiary

Shipt operates as a Target subsidiary with:

  • Headquarters: Birmingham, Alabama (same as pre-acquisition).
  • Reporting: Rolls up into Target’s same-day operations.
  • Strategy: Aligned with Target’s broader same-day delivery and loyalty roadmap.
  • Independence: Retains brand identity and continues serving non-Target retailers.

Financially, Shipt’s results are reported as part of Target’s same-day services revenue, not separately disclosed.

Is Shipt only for Target customers

No. Shipt serves 100+ retailers, including:

  • Target (deepest integration).
  • Meijer (Midwest grocery).
  • HEB (Texas).
  • Publix (Southeast).
  • CVS, Costco, Petco, Office Depot.
  • Many regional grocery chains.

You can sign up for Shipt and use it without ever ordering from Target.

That said: if you’re not a Target shopper, Shipt’s value proposition is weaker. Some retailers offered through Shipt are also available on DoorDash or Instacart with comparable pricing.

What about Shipt’s competitor relationship with Instacart

Shipt’s main grocery delivery competitor is Instacart. The dynamic:

  • Instacart is independent (not owned by a retailer).
  • Shipt is owned by Target — a competitor to Instacart’s retail clients.
  • Some retailers (Costco, Aldi, Whole Foods) prefer Instacart because of the independence.
  • Other retailers (Target, Meijer, HEB) prefer Shipt for the platform stability or business terms.

For customers, both apps serve the same general grocery delivery need; choose based on which retailer you prefer.

For comparison, see Shipt vs Instacart for Customers.

If you shop Target frequently, Shipt is the deepest integration available. Try the 14-day free trial to see if the unlimited-delivery model works for your shopping pattern.

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Try Shipt for grocery delivery Target-owned. Delivers from Target, Meijer, Costco, Petco, Sephora, and many regional grocers. New members get a free trial. Try Shipt Free →

FAQ

Did Target replace Shipt with their own delivery service?

No. Shipt continues to operate. Target also has its own same-day services for non-grocery items (drive-up, order pickup), but Shipt remains the same-day grocery delivery backbone.

Is Shipt going to be merged into Target?

No public plans. Shipt operates as an independent brand serving 100+ retailers. Merging would alienate non-Target retailers.

Does Target’s ownership affect prices on Shipt?

For Target items: prices are at parity with in-store. Target Circle deals apply. For non-Target retailers: generally no impact from Target’s ownership.

Can Shipt drivers also work for Instacart or DoorDash?

Yes. Shipt shoppers are independent contractors; many work multiple platforms. There’s no exclusivity required.

Did the founders stay after the acquisition?

Bill Smith (Shipt founder) remained as Shipt’s CEO until 2022, when he departed. Other early team members are largely gone now.

Is Shipt profitable for Target?

Target doesn’t separately report Shipt financials. Industry analysts estimate Shipt drives meaningful Target same-day revenue, though the unit economics of grocery delivery are challenging across all platforms.

Does Target use Shipt for non-grocery delivery?

Target’s same-day services include both grocery delivery (via Shipt) and non-grocery (Target Drive Up, Order Pickup). Some Target items can be delivered via Shipt; others use Target’s own logistics.

How does Shipt compare to Walmart’s delivery?

Walmart has its own delivery service (Walmart+). Walmart isn’t on Shipt because they’re competitors. Each has its own ecosystem.

Yes. The Shipt app lets you link your Target account for Circle benefits and order continuity.

Will Target ever spin off Shipt?

No public discussion of this. Spinning off would lose synergies; Target seems committed to Shipt as a long-term platform.

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