Brief

Shipt hires more workers to meet growing demand in Ohio

Dive Brief:

  • Shipt, a popular app-based grocery delivery service, said it will hire 750 new shoppers to serve the Cincinnati, Dayton and Columbus, Ohio areas with home delivery from Meijer, according to the Shelby Report.
  • The company currently serves 40 metropolitan areas across the U.S.
  • Shipt Shoppers can set their own schedule through a custom app, which allows them to select orders that work with their daily routine. 

Dive Insight:

The fact that Shipt is expanding in Ohio as part of its partnership with Meijer shows that when done correctly, a delivery platform can compete with Amazon. Businesses has been booming in the state and the service is considered to be one of the leaders now in the Midwest.

By allowing Shipt workers to set their own hours, the company operates somewhat like Uber, a model that has been a success for the on-demand ride company. This creates employees who are happier, which often leads to better service and more grateful customers.

As of May, Shipt had surpassed 40 markets and reached a 20% market share in the e-commerce grocery space — just three points behind AmazonFresh, though still trailing Instacart’s 50%. The company has set an aggressive growth goal, with plans to reach 60 or more markets by the end of this year.

Earlier this month, Instacart ran a promotion offering its Express service, which offers free delivery on orders over $35 and typically costs $149 annually, free of charge to new customers in Texas and the Midwest. Although numbers aren’t in yet from the promotion, it’s a good bet that Shipt sales were hurt, since its deal of $99 a year is substantially more expensive. Still, the service and the employee attitude may be a differentiator. Shoppers may be willing to pay more for Shipt if they prefer it as a provider.

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Filed Under: Grocery Corporate
Top image credit: Shipt