What is Shipt ?
Shipt is a same-day delivery platform that connects users with personal shoppers and drivers to deliver groceries, household essentials, and other items directly to their doors. Originally launched in 2014 and later acquired by Target, it combines convenience and efficiency for both customers and gig workers.
Key Features of Shipt:
- Grocery & Household Delivery
Shipt partners with major retailers (e.g., Target, CVS) to offer fast, fresh grocery delivery. Users can schedule orders through the app and receive items within hours. - Flexible Earning Opportunities
Shipt hires personal shoppers and drivers to fulfill orders. Workers set their schedules, shop for items, and deliver them, earning money through gig-based pay and tips. - Membership Model
Customers subscribe for unlimited deliveries, while non-members pay per order. The service emphasizes affordability, offering promotions like free first-order delivery. - High User Satisfaction
Shipt maintains strong app ratings (e.g., 4.9/5 on Apple’s App Store6), reflecting its reliability and customer-centric approach.
How It Works:
- For Customers: Browse partnered stores, place orders, and track deliveries in real time.
- For Shoppers/Drivers: Accept orders via the app, shop at designated stores, and complete deliveries for payment.
Shipt’s dual focus on seamless delivery and gig-worker flexibility has solidified its position in the competitive on-demand service market.
Here’s a detailed comparative analysis of Shipt vs. Instacart, focusing on their business models, pricing, user experience, and market positioning:
1. Business Model & Membership Structure
| Aspect | Shipt | Instacart |
|---|---|---|
| Membership Model | Subscription-only (99/yearor14/month) for free deliveries. | Hybrid: Pay-per-order fees or Instacart+ subscription (9.99/monthor99/year). |
| Free Delivery Threshold | Orders ≥$35. | Orders ≥$35 for Instacart+ members; non-members pay variable fees. |
| Flexibility | Requires upfront subscription commitment. | More flexible: Users can choose pay-per-order without subscription. |
Key Difference: Shipt mandates a membership for free deliveries, while Instacart caters to both casual users (pay-per-order) and frequent shoppers (subscription).
2. Delivery Speed & Coverage
| Aspect | Shipt | Instacart |
|---|---|---|
| Delivery Window | Guarantees 1-hour delivery slots for members. | Offers 1-hour “Priority Delivery” for Instacart+ members, but standard delivery often takes 2+ hours. |
| Geographic Coverage | Limited to ~5,000 U.S. cities (primarily metro areas). | Wider reach: ~85% of U.S. households and expanding into Canada. |
| Retailer Partnerships | Exclusively tied to major chains (e.g., Target, Kroger, Publix). | Aggregates 1,400+ retailers (e.g., Costco, Aldi, regional grocers). |
Key Difference: Shipt excels in speed for urban subscribers but lacks Instacart’s broader geographic and retailer diversity.
3. Pricing & Fees
| Aspect | Shipt | Instacart |
|---|---|---|
| Delivery Fees | Free for members (orders ≥$35); non-members cannot order. | 3.99–3.99–7.99 per order without subscription; free for Instacart+ members. |
| Service Fees | None for members. | 5% service fee on all orders (waived for Instacart+). |
| Markup on Products | Retail prices match in-store (via Target partnership). | Prices often 10–20% higher than in-store. |
Key Difference: Shipt avoids product markups (due to Target integration), whereas Instacart’s dynamic pricing inflates costs for users.
4. User Experience & Features
| Aspect | Shipt | Instacart |
|---|---|---|
| Shopper Interaction | Real-time chat allows direct communication with shoppers to manage substitutions. | Automated substitution system with limited shopper interaction. |
| App Functionality | Simplified interface focused on Target and partner stores. | Complex but feature-rich: Recipe integrations, multi-store carts, and loyalty program links. |
| Loyalty Programs | Integrated with Target Circle rewards and REDCard discounts. | Partners with retailer-specific loyalty programs (e.g., Kroger Plus). |
Key Difference: Shipt prioritizes personalized shopper communication, while Instacart emphasizes multi-retailer convenience.
5. Market Positioning
- Shipt:
- Targets high-frequency urban shoppers who value speed and Target integration.
- Strengths: No product markups, predictable pricing, and rapid delivery.
- Weaknesses: Limited retailer options and geographic reach.
- Instacart:
- Focuses on flexibility and breadth, appealing to both occasional and heavy users.
- Strengths: Vast retailer network, international expansion, and pay-per-order accessibility.
- Weaknesses: Higher long-term costs for frequent users due to markups/service fees.
6. User Satisfaction Metrics
- Shipt:
- 4.5/5 stars on Trustpilot, praised for freshness and shopper communication.
- Complaints: Limited coverage and auto-renewal opacity.
- Instacart:
- 4.3/5 stars on Trustpilot, lauded for retailer variety.
- Complaints: Price inflation and substitution errors.
Conclusion
Shipt and Instacart cater to distinct audiences:
- Choose Shipt if you:
- Shop frequently at Target/Kroger.
- Prioritize ultra-fast delivery and price transparency.
- Choose Instacart if you:
- Need access to diverse retailers (including Costco).
- Prefer pay-as-you-go flexibility or live in underserved areas.
Both face challenges—Shipt in geographic expansion, Instacart in pricing competitiveness—but their differentiation reflects evolving consumer demands in the on-demand grocery sector.
Shipt Review: Convenience, Competition & Customer Voices
1. Shipt’s Core Strengths
- Speed & Reliability: Shipt delivers groceries and essentials in as little as 1 hour, with a 4.9/5 app rating (iOS) highlighting its punctuality.
- Retail Partnerships: Exclusive ties with Target and regional chains (e.g., Publix) ensure product variety.
- Membership Perks: Annual plans ($99/year) offer unlimited free deliveries for orders over $35, undercutting rivals like Instacart’s fee-per-order model.
2. Competitor Comparison
- Instacart: Larger retailer network but charges higher fees (~$4–$7 per order) and lacks subscription benefits.
- Amazon Fresh: Prime-integrated but limited to Amazon’s inventory; Shipt excels in local store access.
- Walmart+: Competes on price but requires Walmart loyalty, whereas Shipt offers multi-store flexibility.
3. User Reviews & Pain Points
- Pros: Customers praise shopper communication and freshness guarantees (“My avocados are always perfect!”).
- Cons: Some report occasional substitution issues or membership auto-renewal complaints.
4. Verdict
Shipt leads in speed and subscriber value but faces stiff competition on pricing. Ideal for Target shoppers and those prioritizing consistent service over lowest-cost options.
Positive Feedback:
- Fast & Reliable Delivery: Customers frequently praise the 1-hour delivery service, noting consistent punctuality.
- Shopper Communication: Users highlight real-time chat with shoppers as a standout feature, ensuring accurate substitutions3.
- Freshness Guarantee: Many reviews commend the careful handling of perishables like produce and dairy.
Critical Feedback:
- Limited Coverage: Some users report service unavailability in suburban/rural areas compared to competitors.
- Auto-Renewal Issues: A recurring complaint involves unexpected membership renewals without clear reminders.
- Inconsistent Substitutions: While communication is strong, occasional mismatches in replacement items occur.
Comparative Notes:
- Shipt’s Target integration receives higher satisfaction scores (e.g., REDCard perks) than standalone grocery services7.
- Rating trends show Shipt outperforms Instacart in delivery speed but lags in geographic coverage.