Target vs Amazon: Same-Day Shipping Competition Heats Up With Shipt Expansion Plan

The competition between U.S. giant retailers is heating up after Target revealed its big plan for its same-day grocery delivery service, Shipt, for next year.

On Tuesday, the service that Target bought for $550 million in 2017 disclosed to TechCrunch that it is set to offer same-day delivery on “all major product categories” by 2019.

The move will greatly expand the number of products the delivery service already covers. As of late, Shipt offers its same-day delivery service in over 55,000 groceries, electronics, toys and other products.

With the expansion, customers can expect Shipt to offer same-day delivery for apparel, towels and many other items. Target declined to reveal the specifics at this point, but an announcement could be on the horizon.

Target appears to be serious in offering a game-changing solution, so it could win more customers than Amazon. Shipt’s yearly membership costs $99, which is much cheaper than Amazon Prime’s $199 annual membership fee.

It’s important to note that Amazon charges an extra $14.99 per month on top of its Prime subscription just so customers can use its AmazonFresh grocery delivery service, according to The Verge.

Shipt saw massive expansion this year. With the planned expansion next year, Target customers could end up choosing Shipt as their preferred same-day service over its rivals.

Just last week, the retailer proudly shared in a corporate blog post that Shipt has now reached over 200 markets across 46 states in the U.S. At the time of Target’s acquisition, the delivery service was only available in 70 markets. Target also teased that Shipt is going to expand geographically next year.

“We’re always looking for ways to make shopping Target’s selection even easier,” Target’s chief operating officer John Mulligan said. “With Shipt, same-day delivery became a reality for our guests across the country, making Target the first retailer to offer the service coast to coast.”

Meanwhile, Walmart has partnered with various companies for its deliveries, including DoorDash, Lyft, Postmates and Uber. The retail company does not have membership fees like Target and Amazon. However, it offers free two-day shipping on orders worth more than $35.