Shopify Inc. is in talks to buy technology startup Deliverr, according to people familiar with the matter, a move that would help the Canadian e-commerce company expand in fulfillment services. 

A deal could value San Francisco-based Deliverr at more than US$2 billion, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and discussions could fall apart, the people added. 

A representative for Shopify declined to comment. Representatives for Deliverr didn’t immediately respond to requests for comment. 

Closely held Deliverr helps merchants on Inc., EBay Inc. and other online marketplaces get products to consumers in two days or less, according to its website. Fast-shipping has become a must-have service for retailers, as the booming online shopping market became increasingly competitive during the pandemic. 

Deliverr uses analysts to predict where people might be interested in buying art supplies, makeup, shampoo and other goods. Then it uses that information to position items in its warehousing network to achieve swift delivery. 

If talks are successful, it would be Shopify’s largest-ever deal, according to data compiled by Bloomberg, and complement the company’s subscription-based software that allows anyone to set up an online store. 

The deal “would be a small step in the right direction, especially as has doubled its logistics network in the past two years,” Bloomberg Intelligence analyst Anurag Rana said in note Wednesday. “Unlike Amazon, Shopify doesn’t own large distribution centers and depends on third-party companies to provide faster shipping to its merchants.”

Led by Chief Executive Officer Tobi Lutke, Shopify soared during the coronavirus pandemic-driven online shopping boom. As Covid concerns and restrictions have lessened, its shares have slid, along with those of others such as Netflix Inc. that also thrived during lockdowns.

Shopify fell 13 per cent to US$525 in New York trading Wednesday and is now down 62 per cent this year, giving the Ottawa-based company a market value of about US$66 billion. 

In November, Deliverr raised US$250 million in a funding round led by Tiger Global at a valuation of US$2 billion, a statement showed. Existing investors including 8VC, Activant, GLP, Brookfield Technology Partners and Coatue also participated.