Shipt

Shipt is an American delivery service owned by the retail giant, Target. Founded in 2014 by Bill Smith, the company is based in Birmingham, Alabama. Shipt operates in more than 260 cities, delivering groceries, home products, and select electronics.

History

Shipt was founded in 2014 by Bill Smith in Birmingham, Alabama. The company started as a same-day delivery platform, initially focusing on delivering groceries. In 2017, Shipt was acquired by Target Corporation for $550 million, marking one of the largest tech deals in Alabama's history.

Services

Shipt offers same-day delivery for a variety of products, including groceries, home products, and select electronics. Customers place orders through the Shipt app or website, and Shipt's team of shoppers pick and deliver the items. The service is membership-based, with customers paying an annual fee for unlimited deliveries.

Business Model

Shipt operates on a membership model, where customers pay an annual fee for unlimited deliveries. The company also generates revenue through partnerships with retailers. Shipt shoppers, who are independent contractors, are paid per order and receive tips.

Criticism and Controversy

Like many gig economy companies, Shipt has faced criticism and controversy. Issues have included low pay for shoppers, lack of benefits, and concerns about worker classification.

See Also

• Instacart
• Amazon Prime Now
• Postmates
• DoorDash

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  Shipt Logo

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  Bill Smith speaking about Shipt Birmingham expansion in 2018