Shopify’s Strategic Move: Selling 6 River Systems to Ocado


Shopify, the Canadian e-commerce giant, unexpectedly revealed last week that it would cut off 20% of its workers after narrowly beating Wall Street forecasts in its earnings report. Despite the layoffs, Shopify is still dedicated to democratizing, simplifying, facilitating, and expanding commerce. In addition, the business recently sold 6 River Systems to Ocado Group, an English supermarket technology licenser, for nearly half a billion dollars. 6 River Systems was a company that specialized in warehouse automation. This action demonstrates that Shopify is well-positioned to continue setting the pace for e-commerce innovation despite the layoffs.


Shopify's Strategic Move

The Shocking Layoffs at Shopify

Since the business had recently delivered an earnings report that exceeded Wall Street estimates, Shopify’s layoffs were a surprise.11,600 people were let go, or 20% of the company’s workforce. Even though the announcement was unexpected, CEO Tobias Lutke moved quickly to reassure the company’s stakeholders and staff that it is still devoted to its fundamental objective of making commerce simpler and easier for everybody.

A Fortunate Sale for 6 River Systems

Fortunately, Shopify sold 6 River Systems, a company it had purchased in 2019 for warehouse automation. The warehouse automation sector has seen rapid expansion due to the epidemic, and 6 River Systems, which had a five-year head start in this market, was a desirable purchase for Ocado Group. With its considerable commercial and R&D competence in non-grocery retail areas, the robotics company will join Ocado’s technological estate.

The Advantages of Shopify Selling Six River Systems

Despite reservations over the sale of 6 River Systems, Jerome Dubois, co-founder of Shopify and former vice president of Shopify Logistics, has claimed that the robotics company has agreed with Shopify to continue providing systems to clients, including Ocado. In contrast, the Amazon-Kiva agreement prevented customers from accessing robotic equipment. The acquisition of 6 River Systems by Ocado Group demonstrates that Shopify is still dedicated to its fundamental goal of facilitating commerce for all people, and the business is still in a solid position to continue setting the standard for e-commerce innovation.

The Promise of Shopify to Simplify Commerce for Everyone

Tobias Lütke, CEO of Shopify, is dedicated to the company’s primary goal of making commerce simpler, more accessible, democratized, participative, and more widespread despite the layoffs and the sale of 6 River Systems. He argues that technical development constantly tends towards simplicity and that streamlined businesses perform better. Lutke feels that the birth of the AI age has given rise to previously unheard-of capabilities and that Shopify has the honor of being among the businesses with the highest odds of utilizing AI to benefit its clients. Now that a copilot for business is conceivable, Shopify’s primary goal is to create the finest possible copilot.

Shopify and e Commerce

The AI Era and Shopify’s Future

Shopify is well-positioned to continue setting the pace for e-commerce innovation as the AI age comes into being. The firm has the chance to employ AI to support the success of its clients as it continues to concentrate on making commerce more straightforward and accessible for everyone. Shopify can create the most incredible possible product with the copilot for entrepreneurship now at their disposal, and they can continue to lead the e-commerce sector.

However, Shopify’s dedication to simplicity and use will probably continue to fuel its growth in the long run. In his Forbes interview, Lütke stated, “The companies that can simplify the complex are the ones that end up winning.” Shopify is in an excellent position to keep setting the standard for e-commerce innovation because of its emphasis on usability and simplicity and its investments in artificial intelligence and machine learning.


Although the Shopify layoffs were unexpected, the company’s recent sale of 6 River Systems to Ocado Group shows its sustained commitment to its goal of streamlining and simplification of commerce. Shopify is ideally positioned to maintain its leadership role in advancing e-commerce innovation as the age of artificial intelligence dawns.


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