Is Shipt a scam? You may have this question in mind if you are reading this.
Nowadays, there are many sharing economy opportunities where people can make some extra money in addition to their full-time job.
But at the same time, there are so many scams out there. So it’s a good practice to always do some research to avoid wasting your precious time or even money.
To be transparent, I am not an affiliate of Shipt so you can be sure that my opinions are honest and unbiased.
In this review of Shipt, I will cover the following:
Table of Contents
What is Shipt?
Shipt is an on-demand grocery delivery service company founded by Bill Smith in 2014. Its headquarter is located in Birmingham, Alabama.
It was acquired by Target in 2017 and is now an independent subsidiary of Target.
The company provides services of delivering groceries, select electronics and home products, which is now available in 47 different markets across the US. That helps buy people to live easier and more conveniently.
How Does Shipt Work?
Basically, Shipt allows people to order groceries and other household items online and get them delivered to your door.
Once customers place an order on Shipt, it will be sent to a personal shopper, who will then pick up the item and deliver the groceries to the customers.
There are around 40,000 shoppers and thousands of customers using their service. They plan to increase their shoppers to around 100,000 in the near future.
The entire service is run by their mobile app, which allows shoppers to control the product ordered, the day of picking up the order, the quantity, the price and stores to pick up the groceries.
How to Join a Shipt as a Shopper and Make Money?
To join Shipt, there are some basic requirement to fulfill:
- You are at least 18 years old
- Have a valid U.S. driver’s license and car insurance
- Have a reliable vehicle
- Have knowledge of selecting products
- Have insulated cooler bags prepared
- Able to lift 40 pounds
- Have a smartphone
Also, you have to pay an annual membership fee of $99 to go through the application process:
- Answer the situational questions about customer service
- Your answers will be reviewed by Shipt and wait for approval.
- Shipt will do a Car insurance background check of you.
After approval, Shipt will give you a training with test. They will also send you a Shipt t-shirt and debit card for use. You can then pick groceries from grocery stores in your area, pay for it using the Shipt app and deliver the goods to the customers.
How Much Money Can You Earn With Shipt?
There are different compensation plans based on volume.
The website claims that shoppers are able to earn $22 per hour with Shipt. It pays shoppers $5 plus 7.5% of the order value. For example, if the order is $50, you will earn $8.75 commission. You can get the pay checks weekly.
Pros and Cons of Joining Shipt as a Shopper
Pros of Shipt
- You can have a flexible working hours
- You can earn tips for providing excellent customer service, which is extra to your commission
- If you live in a big city, it’s easier to make more money
Cons of Shipt
- The learning curve of making money with Shipt is quite steep
- It’s not free that you have to pay $99 membership fee annually
- The commission rate is low given the time spent
- Not all clients give you tips
- You don’t get reimbursed for travel expenses and maintenance of your vehicle
- Earning potential is limited by your time
Is Shipt a Scam? Why don’t I Recommend it?
Shipt is not a scam. It provides a legit way for people to earn some extra money. And given that it is owned by Target, that makes it more trustworthy.
But if you aim to use Shipt as a side hustle to make money, I wouldn’t recommend it.
The earning potential is limited by your time. You are basically selling your very limited time for money. It is not passive income.
To qualify as a great side hustle, it should be able to generate a steady stream of passive income for you. Providing delivery service for Shipt is not passive income, meaning you cannot earn money while you are not working.