Target has brokered a deal to acquire grocery delivery start-up Shipt for US$550 million, according to a report published by Bloomberg.

The all-cash deal will enable the US retailer to offer same-day delivery and is considered a strong indication of Target’s intent to keep apace with Amazon following the latter’s acquisition of Whole Foods last year.

“One-stop shopping was convenient in the 1990s but for today’s families you have to be able to do instant food delivery as well. It’s also a realization that Amazon, this big technology disruptor, has entered the consumer landscape,” Kantar Analyst Robin Sherk told Bloomberg.

“With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country,” said John Mulligan, Target COO in a statement.