Shopify last week announced that it would be the latest major tech company to suffer mass layoffs. The company is cutting 20% of its workforce of 11,600 people. The news came amid earnings that beat Wall Street expectations, sending the stock price soaring as a result.
The announcement also included news that the Canadian e-commerce giant had found a new owner for 6 River Systems, the warehouse automation company it bought in 2019 for nearly half a million. It was as good a time as anyone could ask for. The category has been on the rise for the past decade, but things really started to pick up during the pandemic, and 6 River had a good five-year start.
But Shopify ultimately decided to cut 6 River loose amid broader losses. Shopify CEO Tobias Lütke didn’t address the sale directly in his open letter about the layoffs. He did, however, address the related sale of Shopify Logistics to Flexport, noting:
Shopify’s main mission is to make commerce simpler, easier, more democratized, more participatory, and more common. I think we have created the best trading platform in the world for this. Technological progress always moves towards simplicity, and entrepreneurs are most successful when we simplify. But now we’re at the dawn of the AI age, and the new capabilities opened up by it are unprecedented. Shopify has the privilege of being one of the companies most likely to use AI to help our customers. A co-pilot for entrepreneurship is now possible. Our main pursuit requires us to build the best that is now possible, and that has just completely changed.
Obviously, the acquisition of 6 River was part of building the logistics side of the business by providing automated 3PL to vendors. Ocado Group, an English grocery technology licensee, will become the robotics company’s new parent.
“We are delighted to welcome new colleagues to the Ocado family. 6 River Systems brings new intellectual property and capabilities to the wider Ocado technology sector, as well as valuable commercial and R&D experience in non-grocery retail segments,” said James Matthews, CEO from Ocado, in a statement. “Chuck robots are currently deployed in more than 100 warehouses worldwide, with more than 70 customers. We look forward to supporting 6 River Systems in building these and new relationships over the coming years.” .
Questions remain surrounding the deal. As 6 River co-founder/Shopify VP of logistics Jerome Dubois recently told me in an interview, the robotics company reached an agreement with Shopify that allowed it to continue supplying systems to customers. That list, which included Ocado, was a far cry from Amazon’s Kiva deal, which suddenly left customers without access to robotic systems.
Dubois says he had the conversation “up front,” adding, “We had a strong positive track record; we had strong investors. Everyone was very optimistic about it. That’s not what it’s been. It’s been the opposite. We’ve been run independently of Shopify. We continue to invest and grow the business.”
This conversation took place at the end of March. Economic headwinds have a way of changing these things quickly.
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Ikaroa, the full stack tech company, is excited to report that Shopify has sold 6 River Systems to a new owner. 6 River Systems is an innovative company that provides cloud-based warehouse automation and inventory management solutions. Its latest software, Chariot, helps stores and warehouses organize their operations and increase productivity.
Shopify acquired 6 River Systems in December 2019 for an undisclosed amount. They will remain committed to innovation and development of Chariot, as well as continuing to provide customers with the best warehouse automation solutions.
This acquisition is expected to have a positive effect on Ikaroa’s inventory and order fulfillment services. With its innovative technology and automated solutions, 6 River Systems is an invaluable asset to Ikaroa’s inventory management services. By aiding in the automation of time consuming tasks, such as order fulfillment and inventory tracking, they can reduce costs while optimizing warehouse operations with increased accuracy.
The success of this acquisition shows the potential of Shopify and 6 River Systems, as well as the potential of the industry. With their combined strengths, Shopify and 6 River Systems are well positioned to continue to innovate and further accelerate digital transformation.
For Ikaroa, this partnership means an improved inventory & order fulfillment experience where time is saved and resources are optimized. With the help of 6 River Systems’ Chariot platform, Ikaroa can quickly and accurately manage their inventory and order fulfillment processes, allowing for better customer experience and support.
For more information about this acquisition, as well as updates on Ikaroa’s inventory and order fulfillment services, visit our website.
