Shipt Launches Pay-Per-Order Deliveries

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Shipt Launches Pay-Per-Order Deliveries

By Thad Rueter - 08/20/2020
Shipt Launches Pay-Per-Order Deliveries
In tests, Shipt saw a 25% increase in new customers as a result of the pay-per-order offering

Grocery delivery service Shipt has rolled out a pay-per-order offering nationwide.

In addition to its annual membership offering — $99 per year for unlimited free deliveries of orders $35 or more — the company now offers customers and prospective customers the opportunity to pay per order, purchasing Shipt passes for one, three or five Shipt shops for $10, $9 or $8 per delivery, respectively.

"Ever since Shipt first launched with our subscription membership model, our customers have responded positively. And up until now, all of our customers had an ongoing membership with us," said Kelly Caruso, CEO of Shipt. "However, we knew that we had an opportunity to introduce even more people to Shipt by allowing them to shop with us in ways that best suit their needs. The challenges consumers have faced during the pandemic further strengthened our resolve to make Shipt as accessible to as many customers as possible."   

Earlier this year, Shipt tested offering non-members the option to try Shipt with one-, three- or five-time passes. The early results showed consumers responded positively to the pay-per-order single use passes and packs. During the test, those passes quickly accounted for the majority of how new users began shopping with Shipt. The company saw a 25% increase in new customers as a result of the pay-per-order offering. Customers have the option to move from a pay-per-order to a subscription model at any time.  

"We believe that the future of Shipt is one where our customers and members engage with us in ways that work for them, their needs and their lifestyle," said Caruso. "This expanded suite of delivery rates and options has been a meaningful option for both new customers as well as those that are new to grocery and essential delivery services." 

Available to 80% of households in more than 5,000 U.S. cities, Shipt is an independently operated, wholly owned subsidiary of Minneapolis-based Target, operator of more than 1,800 stores, 39 distribution centers and Target.com, and No. 7 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in North America.