Shopify sells its logistics business and fires 20% of its employees

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Shopify is exiting its logistics business, selling it, and laying off 20% of its employees.

Shopify bought Deliverr in May 2022 with the intention of competing with Amazon and Walmart in the e-commerce logistics market. Things did not go as planned, and the company is now selling Deliverr to Flexport.

According to the Wall Street Journal, Shopify is also selling its 6 River Systems warehouse robots division to Ocado Group, a UK-based automated supermarket fulfillment startup. According to the publication, Shopify aims to let off 20% of its employees as a result of the sales.

According to Lutke’s blog post, the company must examine its core objective vs. side quests on a regular basis and emphasis on what’s important. That is not to suggest that side tasks aren’t vital, but they must contribute to the company’s core quest in order to make sense. This reevaluation aided it in divesting itself of its logistics business.

Shopify’s primary goal is to make commerce simpler, easier, more democratized, participatory, and widespread. I believe we have created the best commerce platform in the world for this purpose.

Technological development usually leads to greater simplicity, and entrepreneurs thrive when we simplify. However, we are now at the dawn of the AI era, with extraordinary new capabilities awakened.

Shopify has the distinct advantage of being one of the firms with the best chances of employing AI to assist our clients. A business copilot is now a possibility. Our main mission requires us to create the best thing that is now feasible, and this has now changed completely.

 

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