Shipt Shopping is for customers an easy way to get everyday essentials delivered to their house in a few taps on the smartphone. In addition, grocery delivery services like Shipt are a making money opportunity for independent contractors who sign up as Shoppers.
Acquired by Target in December 2017, the company raised a total of $65.2M in funding and is now operating in +250 cities across the U.S., including Boston, Chicago, Dallas, Denver, Houston, New York, Portland,Phoenix, San Francisco Bay area, and more.
But how much can you make shopping and delivering groceries for this app? In this guide, we will give answers to your questions so you can decide if it’s worth it for you to work for the online grocery store app.
Shipt uses web interface and mobile app technologies that customers can use to order a wide array of items from local and national grocery stores in the U.S. including Target, Petco, or CVS.
Here is how the online grocery store works (step by step):
💡 Pro tips: Shipt is unable to accept EBT cards, store gift cards or Target REDcards.
To be clear, here is a detailed job description. You can become a Shopper in one of the markets where the Birmingham-based company offers same day on-demand delivery service. To get started, Shipt drivers need to schedule on shifts.
Their job duties include:
It is a flexible side hustle, you can work part time, full time as a temporary job or on top of your daily job if you need extra cash.
It is important to understand how your pay works and the pay model and structure. Shipt Shopper pay depends on several factors, including the hours you work, the number of orders you complete, and the types of orders you receive.
Shipt makes money from the membership fees that every client must subscribe in order to use the platform.
You will not have a fixed salary. Working for Shipt you need to schedule yourself in shifts in order to secure a slot. The fact you are scheduled will not guarantee you receive orders to claim. So, you could be on the schedule, but have nothing to do.
Basically, you get paid for the time and distance of a delivery. Plus, you keep all of your tips and bonuses. As a side-gigger, you have to pay taxes on a quarterly basis.
Under the previous model, Shipt implemented a pay scale for drivers that was equal to $5 + 7.5% of the order total. Recently the online grocery changed their pay structure. The changes to the algorithm had a bad impact on all the shoppers who complained about the pay cut.
Learn how pay works and get a breakdown of Shipt earnings.
So, how much does shipt pay? Shipt considers that it will take you one hour to complete an order. Most Shipt Shoppers earn around $17-19.
Shipt workers on Indeed report earnings from $15-$25/hour, with an average pay of $22/hour. And on Glassdoor, shoppers have reported base hourly earnings from $12-$14/hour, with an average base pay of $13.
If you are looking for the way to boost your income you may want to consult our comparison between Shipt and Instacart.
However, if you want to earn cash fast and are considering driving for a ridesharing company, delivering food or or delivering for similar companies, there are a couple of factors that you have to keep in mind.
Since you are considered self-employed, you must be fully aware of how much it will cost to run your business. This means that some costs can affect your earning potential as a grocery delivery driver.
Even the cost of things such as gas, new tires can add up. We’ve summarised the main ones to help you plan ahead.
More driving means more wear and tears in your vehicle and more repairs and spare parts replacements.
We will never be tired to tell you: Insurance is an important consideration for anyone who’s planning to start their own business.
You have to protect yourself in the event of damage or injury and buy your insurance accordingly. You should always upgrade your vehicle insurance to business insurance.
When you’re planning your side hustle, it’s a good idea to think how to find cheap insurance.
Using your Shopper app requires data. Lots of data. You should always have an unlimited data plan.
You may need to purchase equipment. If you're becoming a grocery shopper, you’ll need a required insulated bag. It’s important to take these costs into account. Take a look at our guide to courier gears.
There is only one way to get paid with Shipt: Weekly Pay. With Weekly Pay, your earnings are transferred into your bank account every Friday for the orders you completed from Monday to Sunday of the previous week.
It may take 2-3 business days before your deposit shows in your account. This can happen for different reasons:
When using the grocery app, many users appreciate the simplicity of ordering groceries while sitting on their couch at home. But then comes the questions that can be so fraught with difficulties: to tip or not to tip, and if so, how much?
We write a complete guide about how tipping works with grocery delivery. It is the same for Shipt.
Tipping is a demonstration to express satisfaction for the service provided.
There is no scandal or controversial policy. Shoppers get 100% of the tips. Finally, to avoid scams, users can change the tip amount only two hours after the delivery.
Since you are considered an independent contractor and not a Shipt employee, the online grocery service will not withhold any taxes from your pay. It is your responsibility to pay your quarterly estimated tax, submit your tax return and report your income to the IRS. Deducting business expenses is an easy way to increase your profit.
Finally, Shipt will only generate the tax form and provide a detailed breakdown of your annual earnings.
Learn how to do taxes for Shipt in our guide to taxes.
There are a lot of great ways out there for helping lower your taxes and increasing the money that stays in your pocket. We suggest you start to keep track of your mileage.
Whether you sign up for Postmates, DoorDash or Shipt, it is important to learn the secrets for transforming your side gig in a successful and more lucrative gig job. You can earn extra cash if you follow our tips and tricks:
Shipt has emerged as a part-time valuable for people looking for a way of making good money with flexibility that is the most enticing aspect of this job. In addition, with the coronavirus pandemic delivery jobs are in high demand and hiring.
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