Shipt operates a subscription-based online grocery delivery marketplace that charges a $99 annual membership for unlimited deliveries and uses scheduled delivery windows rather than on-demand drops. The company partners with grocery chains including H-E-B, Miejer, Costoc, Whole Foods and ABC Fine Wine and Spirits, and sells groceries, household goods and alcohol through its app. Shipt serves 47 metro areas and about 20 million families and reports an average order basket of $110, more than three times the in-store average. The company is on track to expand to roughly 100 cities within the next year and plans to add about 60 new cities by the end of the year. Management says Shipt is booking sales at about 40% of Instacart’s level while having raised roughly one-tenth the capital of that competitor. The company emphasizes logistics efficiency via preset delivery windows to scale beyond its southeastern roots. Shipt operates an on-demand fresh-food and grocery delivery service built around a paid membership model. The company charges $99 per year or $14 per month for delivery and applies about a 15% markup on items without retail partnerships. Shoppers are paid per order (about $17 per shop on average, typically a $5 base plus 7.5% of the order and tips). Shipt launched in November 2014, was founded by Bill Smith, and is based in Birmingham, Alabama. Its service covers 27 metro areas in nine states across much of the Southeast and additional markets including Texas, Arizona, and Ohio. Management says the company is profitable in most of its markets and plans to use new financing to expand further in the food-delivery space.

Total raised

$60M

Funding rounds

2

Latest round

Series B

Latest activity

Jun 2017