Grocery delivery services are a popular choice for those looking to earn extra income. Among the various options, Shipt stands out as a niche player. While it might not have the same widespread recognition as Uber Eats or DoorDash, Shipt offers a unique opportunity. So, How Much Does Shipt Pay, and is it worth considering in 2024? Let’s explore the earning potential and key aspects of working as a Shipt shopper.
What is Shipt?
Shipt is a grocery delivery app that allows users to order groceries and household essentials from retail stores and have them delivered to their doorstep. Founded in 2014 and acquired by Target in 2017, Shipt partners with various retailers, including Target, Petco, and CVS, operating in over 250 cities across the U.S.
Alt text: A Shipt shopper is shown delivering groceries to a customer’s front door.
How Does Shipt Work?
The Shipt platform connects customers with personal shoppers who fulfill their grocery orders. Here’s a step-by-step breakdown of how Shipt works:
- Order Placement: Customers use the Shipt app to shop for groceries, place their order, and make payment.
- Shopper Notification: The app notifies available shoppers in the area (like you) to pick up the order.
- Shopping and Payment: As a personal shopper, you visit the store, select the items, and pay using a pre-loaded Shipt debit card.
- Delivery: Once the order is complete, you deliver the groceries to the customer’s location.
Shipt shoppers are independent contractors, providing flexibility in setting their own schedules and working hours.
How Much Does Shipt Pay?
The amount Shipt shoppers earn varies based on several factors. In larger cities, shoppers can expect to earn between $20 and $30 per hour. In smaller areas, the average pay is closer to $15 per hour, including tips.
It’s important to note that Shipt shoppers are paid per delivery, not at a fixed hourly rate. Shipt estimates the time required to complete a delivery, but the actual earnings depend on the number of deliveries completed. The more deliveries you make, the more money you can earn.
Shipt Pay Calculation: Understanding the Earning Standard
Shipt’s pay structure has evolved over time. Previously, shoppers earned $5 per order plus 7.5% of the customer’s total bill. However, in 2022, Shipt introduced the Shipt Earning Standard.
The Shipt Earning Standard aims to ensure that shoppers earn at least $16 per hour. The base pay remains $5 per order, and the remaining compensation is calculated based on factors like delivery time, the number of items, and the distance driven during the shopping trip.
While the Earning Standard aims to provide a minimum earning level, some shoppers have expressed concerns that the new structure is less transparent and potentially less lucrative than the previous model.
Alt text: A graph illustrating the potential earnings of a Shipt shopper based on hours worked and tips received.
Maximizing Earnings: Tips and Customer Service
Shoppers retain 100% of their tips, making excellent customer service crucial for maximizing earnings. Providing a positive and efficient delivery experience can lead to substantial tips that significantly boost overall income.
Payment Schedule: How Shipt Shoppers Get Paid
Shipt pays shoppers weekly through direct deposit. Earnings for orders completed from Monday to Sunday are deposited into the shopper’s bank account the following Friday. It may take 2-3 business days for the deposit to appear in your account.
Shipt also offers an instant payout option, allowing shoppers to cash out their earnings daily (Monday to Friday) for a $0.50 transaction fee.
Factors Impacting Shipt Pay: Expenses to Consider
While the number of orders, customer tips, delivery window incentives, and promo pay offers influence earnings, shoppers must also consider potential expenses.
Key expenses to factor in include:
- Vehicle Maintenance: Increased driving leads to wear and tear on your vehicle, requiring regular maintenance and potential repairs.
- Gas: Fuel costs are a significant expense for delivery drivers.
- Insurance: As independent contractors, Shipt shoppers are responsible for their own insurance coverage.
Other expenses to consider include upgrading phone data plans and investing in delivery equipment.
Independent contractors are also responsible for paying quarterly taxes and reporting their income. Shipt offers resources to assist with taxes, including discounts on TaxSlayer software and providing detailed annual earnings reports.
How to Become a Shipt Grocery Shopper
If you’re interested in becoming a Shipt shopper, ensure that Shipt operates in your area and that you meet the basic requirements.
Shipt Shopper Requirements: Eligibility Criteria
To deliver for Shipt, you must:
- Be at least 18 years old.
- Possess a valid driver’s license, a vehicle, and at least one year of driving experience.
- Have access to a reliable vehicle (1997 or newer) covered by auto insurance.
- Own a smartphone (iPhone with iOS10 or newer/Android smartphone with Android 5.1 or newer).
- Be able to lift 30-40 lbs.
- Have an insulated cooler bag.
You must also pass a background check conducted by Checkr, which examines your criminal and driving records.
Shipt Application Process: A Step-by-Step Guide
The application process involves completing an online application form and participating in a virtual interview.
- Online Application: Visit the Shipt website and fill out the application form with your personal information.
- Additional Information: Provide details about your affiliation with Target (if any) and your t-shirt size (for your Shipt t-shirt).
- Virtual Interview: Schedule and complete a virtual interview with a Shipt team member. The interview assesses problem-solving and customer service skills.
- Background Check: After the interview, Shipt will conduct a background check.
- Acceptance and Onboarding: If you pass the background check, you’ll receive an acceptance message within 3-4 days, along with a Shipt t-shirt and debit card.
- App Download and Activation: Download the Shipt shopper app and begin delivering.
Pros and Cons of Being a Shipt Shopper
Before committing to Shipt, consider the advantages and disadvantages:
Pros
- Flexibility: Set your own schedule and work as many or as few hours as you like.
- Tips: Keep 100% of your tips.
- Incentives and Benefits: Access various incentives, including subsidized car insurance, discounts from partner stores, rewards for milestones, and a free Shipt membership.
- Intuitive App: The Shipt app provides comprehensive order details.
Cons
- Vehicle Expenses: You are responsible for all vehicle-related costs.
- Order Availability: Earning potential may be limited in areas with low order volume.
- Pay Transparency: Some shoppers find the pay estimate less transparent than before.
- Low Base Pay: Delivery orders without promo pay can be relatively low.
FAQs
Is Shipt Legitimate?
Yes, Shipt is a legitimate and reputable brand in the grocery delivery industry.
How Much Can I Make Delivering for Shipt?
Earnings vary, but you can expect to earn around $15 per order on average. In larger cities, earnings can range from $20-$30 per hour, while smaller areas may see rates as low as $12 per hour.
How Can I Make More Money on Shipt Deliveries?
Maximize your earnings by:
- Prioritizing weekend shifts.
- Staying alert for incoming orders to snag lucrative opportunities.
- Bagging items carefully to encourage generous tips.
- Providing excellent customer service.
- Developing an efficient shopping system to complete deliveries faster.
Can I Deliver for Other Apps While Working for Shipt?
Yes, you can deliver for other apps like Instacart simultaneously. As an independent contractor, you have the freedom to work for multiple platforms.
Is Shipt Worth It?
Shipt can be a worthwhile option for those seeking extra income. However, whether it’s suitable as a full-time job depends on your location and earning goals. In areas with high demand, Shipt can be profitable, especially when combined with other gig work. In smaller cities, the limited order volume may make it challenging to rely on Shipt as a primary income source.
