UPDATE, Feb. 26, 2020: Shipt has updated its website to include Allina Health, Shipt 4 Work's 10th participating company.
Dive Brief:
- Shipt has announced the launch of a new program called "Shipt 4 Work," according to a press release. The program will allow employees from participating companies to access same-day delivery for grocery and household orders at no cost to the employee.
- To start, Shipt is partnering with 10 U.S. companies. However, only nine companies are listed on its site, including Fanatics, Dow, Synteract, Kimley Horn, BL Harbert, Envestnet, Warren Averett, Kasasa and Granite.
- Eligible employees can sign up for free Shipt memberships through the Shipt 4 Work web page. Once they provide their company email address and employee ID number, they can then utilize Shipt’s app and website like any other customer.
Dive Insight:
Shipt may have first mover advantage by focusing on business partnerships, giving it access to large groups of potential customers who are more likely to choose its services over a competitor's because it is free to them individually. Grocery delivery as a benefit may be a fairly new concept as there doesn't appear to be any record of a similar programs from competing companies. E-commerce players like Amazon Fresh and Boxed do offer fulfillment tailored specifically for business clients.
This strategy could help Shipt make inroads in market share as grocery delivery providers battle it out for dominance. Instacart remains the top company with 59% of the share, according to Edison Trends, but Walmart has made big plays recently to chip away at its lead. Walmart, which leads online grocery (pickup and delivery) overall, announced in September it was going national with its Delivery Unlimited membership program. However, Shipt has also made aggressive moves to expand over the last two years, growing its same-day grocery delivery services in several markets from Connecticut to Illinois. From January 2018 to January 2019, the company pulled in 92% more orders, per Edison Trends.
Will Shipt's work perks actually boost its bottom line and draw in new customers? If many of the surveys out there are accurate, these nontraditional benefits are now "must-haves," HR Dive reported. Additional perks and supplemental benefits like a free Shipt membership are ways employers can boost morale and recruit new employees. For Shipt, it means putting its name before customers who may not have even considered grocery delivery had it not been for the free benefit or were considering using other services.
