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Birmingham, Ala. - Frustrated with recent actions made by the delivery company, Shipt shoppers gathered in downtown Birmingham on Sunday afternoon to protest. The Target-owned grocery delivery service, which is headquartered in Birmingham, made a full switch to its new pay model on September 30 in what it explained as an effort to pay its workers more accurately.
Previously, Shipt shoppers received a base pay of 7.5 percent of the order plus a $5 flat fee and tips. Now, Shipt says pay is based on effort including the amount of time spent on a shop and drive time rather than a percentage of the receipt. A study by MIT student Dan Calacci and labor group Coworker.org found that order sizes have increased while pay has decreased for 40 percent of Shipt shoppers participating in the study.
Shipt restricts what data is available to the public and has maintained that average pay per shop hasn’t decreased. With restricted data and unclear communication between Shipt and its more than 200,000 shoppers, shoppers argue the new pay structure lacks transparency and has them earning far less.
Catherine, a Birmingham-area shopper for the past two years, told Our 360 News that the changes are clear, but the pay she should receive is incorrect. “It’s not effort based and they’re lying,” she said. “I’ve now gotten a second job because I can’t do this full time anymore and pay my bills. You don’t just cut people’s pay for no reason, especially not during a pandemic."
Shipt released a community update last week detailing the factors included in the pay model and confirming plans to keep the new pay model, consistent with other ‘gig economy’ companies. Shipt shopper pay averages $21 per shop, according to the statement.
Shipt shoppers have organized protests and strikes nationwide since the adoption of the new pay model. A protest in front of Target’s Minneapolis headquarters is planned for Monday.