Target Set To Acquire Transportation Tech Company Grand Junction
By Christine Kern, contributing writer
Acquisition will help improve and expand delivery capabilities and transform supply chain.
Target has announced plans to acquire Grand Junction, a San Francisco-based transportation technology company, in an effort to improve and expand delivery capabilities and transform the company’s supply chain.
“Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” executive vice president, chief supply chain and logistics officer Arthur Valdez explained. “This acquisition is part of Target’s ongoing efforts to strengthen Target’s supply chain to provide greater speed, reliability and convenience for guests.”
Grand Junction, founded in 2014, is a software platform used by retailers, distributors and third-party logistics providers to manage local deliveries through a network of more than 700 local and regional carriers. The company is already working with Target on a same-day delivery pilot at the Target store in New York’s Tribeca neighborhood, according to Target.
Target tested same-day delivery in 2014, and later in partnership with Instacart. And in May it announced its plans for Target Restock, a next-day delivery service focused on “everyday essentials,” like household items, personal care products and other dry goods – similar to those you can order through Amazon Prime Pantry.
“Target is seizing a tremendous opportunity to leverage local delivery as a retail differentiator,” said Rob Howard, Grand Junction’s founder and CEO, who will become a vice president of technology at Target. “We’re thrilled about helping to pursue this opportunity, and to join Target at this unprecedented time in retail.”
Target is planning to offer same-delivery through more New York locations this fall, with the offering expanding to other major markets in 2018, CNBC reported.
Once the deal has been finalized, Grand Junction founder and CEO Rob Howard will become a vice president of technology at Target and employees will become Target team members, according to the report.