Target is investing millions to catch up with Amazon

Source: Mike Mozart / CC BY 2.0

NEW YORK (AP) - Target plans to boost its same-day delivery capability by paying $550 million for Shipt, its latest move to try to catch up with Amazon.

Shipt delivers groceries to its members, who pay $99 a year. Target says it will add more products to the service. Target shoppers will have to make orders through Shipt's app or website and pay the annual fee to get same-day delivery.

Retailers have been looking for ways to speed up delivery as they try to better compete with online shopping giant Inc. Earlier this year, Target bought a delivery logistics company to offer same-day delivery to in-store shoppers.

Minneapolis-based Target expects half of its 1,800 stores to offer Shipt by next summer.

The deal is expected to close before the end of the year.

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