If you’re looking for the cheapest online grocery delivery option, the one that fits your budget and delivers in the stipulated time is always preferable. There are a couple of options to choose from:
| Instacart | Offers comprehensive grocery selection |
| Amazon Fresh, Pantry | Offers groceries and household deliveries to prime members and whole foods customers |
| Shipt | Uses get to communicate with your shopper |
| Postmates | Shopping from local grocery stores |
| FreshDirect | For Eastern U.S. customers who wish to support farms |
But not everyone delivers on the same day. Shipt comes into action claiming door-to-door, one-day grocery delivery (with a price). So if you’re looking for convenience and do not wish to spend a lot of time selecting at the store, Shipt is a considerable option. (Grocery includes vegetables, fruits, meat, seafood, milk and egg, bread, frozen and organic food items)
You require to purchase a membership before placing any orders. This goes from monthly or annual membership and users can cancel at any time. For maximum benefit, users should place more than one order in a month. But on average, you end up paying $5 extra as compared to purchasing from the store.
How Shipt Works?
Shipt is a grocery delivery service that brings household essentials to your doorstep, as fast as within the first half-hour of your selected time slot. This the online same-day grocery delivery service for designated locations, coupling with variety over a big selection of stores.
Step-wise process
- Download the application
- Add location and select a store
- Add products to the cart
- Select a membership plan
- Select a delivery slot
- Substitute your preferences
- Receive your order
Details
Shipt uses a network of independent contractors or “shoppers” for online same-day grocery delivery services. Shipt cobbles a system wherein the customer would go to the retailer’s website, and place an order for in-store pickup and navigate through to the Shipt’s platform to place an order for a shopper to pick up the product.
Once the user places an order and confirms payment, the Shipt shopper texts you while in the store and informs them that they have started putting the order together. They revert in case of queries about orders.
Overall, the Shipt app is easy to navigate, collaborates with many stores in the vicinity and delivers on time.
Shipt Business Model: How Does Shipt Make Money?
Shipt was established around the idea to offer same-day delivery. So the more they shop, the more they earn.
Tip
Shipt encourages members to tip. The tip adds to the total amount of the order all-adds-up, and shoppers earn more for providing exceptional service. As a fact, shoppers who cross 100 online orders earn up to $15 -$24/order.
(Note: Shoppers or Shipt shoppers make the purchase across the stores (like Target, Publix, Meijer, Kroger, H-E-B, HEB, LIDL, Target, Winn Dixie, Costco, Lowes Foods, Piggly Wiggly, ABC Fine Wine, Spirits, CVS, Office Depot, Petco, Publix, Safeway etc.) as soon as an order confirms)
Membership Fee
Shipt charges a bit for products along with the prescribed membership fees. If an order costs $35, then users/members end up paying a $5 overhead, which increases total purchase by 15%.
Delivery Charges
Shipt requires its customers to pay a $99 annual fee or $14 per month for unlimited delivery of orders > $35. Delivery is free for members on orders over $35. Shipt charges $7 of deliveries for orders under $35, for subscribed members, and $10 for non-members. It covers the costs of shopping and delivery. It is available across 260 cities in North America and currently not an option for everyone.
Entities in the Shipt Revenue Model
USPs
- For Users – Deliveries at doorstep, One-day delivery
- For Shoppers – They work as freelance shoppers, earn extra, work part-time.
- For Stores – offline grocery stores benefit from the on-demand delivery market.
Key Entities
- Users
- Stores
- Shoppers
Key Activities
- Customer Management
- Delivery Services
- Local Market Management
Key Resources
- Technical Backend support
- Efficient shoppers
- Collaboration with local stores
Accessible Channels
- Website
- Mobile Application for Android and iOS
Cost Structure
- Commissions to the shoppers
- Cost to keep the tech up and running
- Management Staff
How Shipt Generates Revenue?
Membership
- Annual: $99/year
- Monthly: $14/month
Surge Charge
- $5 > than that store
Delivery Fee
- $7 delivery fee on orders below $35
Technology Stack to Create a Mobile App like Shipt
- Application and Data – Node.js, React, NGINX, CloudFlare, PostgreSQL, TypeScript, Redis, React Native, GraphQL, Rails, Kafka, Go, Storybook
- Utilities – Stripe, Segment
- DevOps – GitHub, Docker, Kubernetes
- Business Tools – Slack, G Suite
Conclusive: Why Should You Consider Shipt?
The shift is a considerably inexpensive – subscription-based online one-day grocery delivery service. It is competitively priced. Users can set delivery times within an hour or more of placing the order without paying extra. Users get to shop their usual list at several grocers: Target, Costco, Meijer, Harris Teeter etc. Let us help you with inventory management, delivery tracking, full social integration and a smooth payment system in one solution for grocery deliveries.
Connect with our experts to know how much does Shipt cost.