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Shipt rolls out pay-per-order delivery option

Target same-day delivery unit makes play to boost user base

Russell Redman

August 20, 2020

2 Min Read
Shipt_personal_shopper-grocery-produce.jpg
To use Shipt's delivery service, consumers previously had to sign up for an annual subscription costing $99.Shipt

Target Corp.’s Shipt same-day delivery service has introduced a pay-per-order option that enables consumers to use the service without having to commit to an annual membership.

Birmingham, Ala.-based Shipt said Thursday that current and prospective customers now can buy Shipt passes for a fee of $10 for one online delivery order, $9 for three orders or $8 for five orders.

Customers can switch from a pay-per-order to a subscription model at any time. An annual membership costs $99 per year for unlimited free deliveries on orders of $35 or more. Shipt personal shoppers pick, pack and deliver the online orders, which can include food and beverages, daily essentials and nonfood items, depending on the retailer.

“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,“ Shipt CEO Kelly Caruso said in a statement. “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.”

Related:Fresh Thyme Farmers Market taps Shipt for grocery delivery

Shipt said that earlier this year it piloted offering one-, three- and five-time delivery order passes with non-members. During the test, passes quickly accounted for the majority of how new users began shopping with Shipt, the company noted, adding that the pay-per-order option generated a 25% increase in new customers.

Since rolling out the passes nationwide, Shipt found that almost 80% of new users first begin shopping on the Shipt platform via the single- or multi-use offerings, although a “vast majority” of Shipt customers subscribe to the service, the company said.

“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,” Caruso added. “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.”

Currently, Shipt’s online marketplace and delivery service covers 80% of U.S. households in more than 5,000 cities. Minneapolis-based Target yesterday reported that, for the fiscal 2020 second quarter, its digital sales fulfilled by Shipt rose more than 350% year over year.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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