Last week, we announced to shoppers in a small number of markets across the country that we were rolling out an evolved pay structure in their markets beginning July 15. We know how much effort shoppers put into everything they do for our members, and we believe that it’s important that shopper pay reflects that.
While this updated pay structure is in about 50 markets as of today, we anticipate that we will bring all markets on board in the coming months. We know many shoppers and members will have questions about these changes, and we hope the information below will help answer those questions and clarify some common misconceptions.
Misconception #1: Do shoppers earn less with this updated pay model?
The updated pay model takes into account the many factors, such as estimated drive time, the number of items in the order, peak shopping windows and location, that can affect the effort needed to shop and deliver an order. This means that some orders may pay out differently than before since payment is based on effort and not on the value of the order.
What does that mean? Here’s an example: Two shoppers each will shop a $100 order and drive 10 minutes from the store to the member’s location. Order A contains 35 items, while Order B only consists of 3. Pay for Order A will be higher because it takes more effort to shop a 35-item order than a 3-item order.
While some orders may pay more and others pay less in the updated model, we have seen average base pay levels remain consistent overall, and slightly higher in some markets, where we have tested this model. And as always, Shipt Shoppers receive 100% of their tips on top of order pay.
Misconception #2: Why isn’t shopper pay adjusted when a member adds items to the order?
Shipt adjusts pay if a member adds items to the order after submitting it to Shipt. Because pay is based on effort rather than the value of the order, the increase in pay will correlate with the increased effort required to shop and deliver those additional items. That means shoppers likely will see a higher increase in pay if the member adds 10 items compared to two, regardless of the cost of the added items. Shoppers see the increased pay reflected in their delivery history after the order is delivered.
It’s worth noting that in this updated model, shoppers always are guaranteed at least the minimum of the estimated pay range for each order that is successfully completed. Even if a member removes items from the order or the shopper finds that several items are out of stock at the store, the shopper knows pay will not drop below the minimum in the pay range.
Misconception #3: Why is Shipt changing its pay model during a pandemic?
Our commitment to shoppers is stronger than ever, and any operational changes we make balance the interests of shoppers with the longer-term needs of the business. We’ve invested tens of millions of dollars in the shopper community in recent months, ensuring shoppers receive personal protective equipment, financial assistance and bonus pay during uncertain times.
Our goal is to maximize shoppers’ earning potential and ensure they get the best value for their effort. The updated pay model better accounts for the effort it takes to shop and deliver orders. Simply put, we want pay to reflect the efforts shoppers are putting into each order, not the monetary value of the items in the order.
We have provided information to shoppers about the updated structure and how to evaluate their opportunities so they get the best value for their effort, and their feedback will be important as we continue to identify ways to make their experience better. We appreciate all that shoppers do as they Bring the Magic with each and every shop, and we’re here to support and recognize their efforts.