Facebook Instagram Twitter YouTube

Shipt Delivery Workers Strike for the Third Time Since March

Shipt’s new payment algorithm threatens to further shortchange workers. Earlier this week, they went on strike to protest.

Elias Khoury

July 17, 2020
Facebook Twitter Share
Two bright green reusable shopping bags filled with groceries. The text on the shopping bags reads "Shipt" in white letters.

Launched in 2014, Shipt is a shipping subsidiary headquartered in Birmingham, Alabama. The enterprise reached mainstream status in late 2017 when it was acquired by Target for a $550 million price tag. Shipt specializes in the delivery of groceries, home goods, and electronics. In its first year under parent company Target, Shipt raked in a staggering $1 billion. But apparently that is not enough to pay their workers, who are classified as gig workers, a living wage.

On July 15th, Shipt workers staged a “walk-off” to protest the company’s new payment algorithm, which is not public information. Workers encouraged one another to refuse all delivery orders. They also called upon customers to boycott Shipt. #DeleteShipt quickly began trending across social media platforms. This was the third time Shipt workers had gone on strike since the onset of the pandemic.

While management claims the new system will better reward hard work, workers are convinced it will drive down commissions. And their fears seem to be well-founded. When Shipt last altered their algorithm in 2019 — with an iteration they called “V2”— payouts dropped considerably.

Just ask Jeanine Meisner: a senior worker from Kalamazoo, Michigan. The amount Meisner was making per order immediately dropped upon the introduction of V2. “With the new pay scale I felt like I was basically working for free,” she said.

Strike organizer Willy Solis of Texas confirms Meisner’s account. According to him, Shipt workers across the country experienced sharp commission dips as a result of V2. 

“Collectively we joined forces and started keeping tabs and calculating… and [workers] were losing significant money,” he said.

Rollout of the newest Shipt payment algorithm threatens to exacerbate matters further. In a July 11th Medium post, Shipt workers note that it “removes all transparency from its shopper compensation calculations” and “will likely reduce… pay by at least 30%.” And there are self-interested reasons for Shipt to do this.

For one, commission reductions translate to smaller business costs which translate to more profit. The lack of transparency allows Shipt to quietly slash worker pay without prior announcement, avoiding future public relations hassles. Unsurprisingly, Shipt’s workers feel cheated and betrayed.

“This is not at all the company that we hired in with,” lamented Meisner, who joined Shipt four years ago. “I think a lot of what they do is very manipulative and [Shipt] is only out to benefit their bottom line. I feel like they are making an incredible amount of money off the backs of their [workers].”

What is going on with Shipt highlights the uncertainty that those in the gig economy constantly face. By definition, gig workers lack regular hours and a steady stream of income. And the sporadic nature of their work makes unionization exceedingly difficult, which limits their earning potential while on the job. Gig workers are also not covered by most labor protections, since they are not considered employees.

This financial precariousness plagues a growing segment of the American population. Gig work is the primary source of income for 44% of Americans — up 10% from just three years ago. And with the OECD warning that another Great Depression is imminent, the imperative to organize and fight for better labor conditions has never been greater.

Facebook Twitter Share

Labor Movement

Three tables full of food, with signs hung above them. One says "The People's Pantry: FREE FOOD." Banners hung from the tables say "Free CUNY" and "Cop Free School Zone"

CUNY Administration Cracks Down on Student and Worker-Run Food Pantry

Students and workers opened "The People's Pantry" seven weeks ago as part of a broader anti-austerity campaign at CUNY, leading to several direct confrontations with the administration.

Olivia Wood

March 19, 2023

Temple’s Grad Worker Strike Ends with Important Victories 

The last report on the strike from a union teacher at Temple University in Philadelphia.

Jason Koslowski

March 17, 2023

Teachers and Education Workers Set to Strike! Tens of Thousands Rally in Los Angeles 

A three day strike was announced by two education unions at a rally attended by tens of thousands of members. The workers are calling for increased wages, reduced class size, and an end to harassment by their employers.

Julia Wallace

March 17, 2023
A sign drawn on a small whiteboard, in trans pride colors. Text: "CUNY Graduate Center and Professional Schools Workers for Trans Rights" Beneath the text is a chain of 9 smiling stick figures in different colors, all holding hands

CUNY Union Chapter Unanimously Passes Resolution in Support of Trans Rights

The Graduate Center chapter of PSC-CUNY, the faculty, staff, and graduate worker union of the City University of New York, passed a resolution pledging support to all workers fighting the anti-trans bills nationwide.

Olivia Wood

March 12, 2023

MOST RECENT

“Lesser Evil” Biden Wants More Border Patrol Than MAGA Republicans

Over the weekend, Biden bragged about his support for even more resources than “MAGA Republicans.” to “secure the border” on Twitter. This is “lesser evilism” in action.

Molly Rosenzweig

March 28, 2023
Customers clear shelves of water Sunday at Fresh Grocer in West Philadelphia.

A Chemical Plant Just Poisoned Philadelphia’s Water: A First-Hand Account of the Crisis

A company dumped thousands of gallons of poisonous chemicals into Philadelphia’s drinking water. This is an on-the-ground account by a Philadelphia worker and socialist.

Jason Koslowski

March 27, 2023
A group of protesters, in the front of whom are a line of protesters wearing red vests. In the front right corner, a white sign reds "vive la retraite," with a skeleton wearing a red hat in the middle of the sign on a black background with a text bubble on its left that reads, "oiv a bosse, c'est pas pour en crever!"

“French March”: The Right to Revolutionary Optimism

Evoking memories of '68, the students enter the fight against Macron. In our chaotic world, the future can only be built in the streets.

Eduardo Castilla

March 26, 2023

Joe Biden Is Deporting Russians Who Escaped Putin’s Draft — Let Them All In!

The United States is deporting Russians who sought asylum following the Russian invasion of Ukraine. This is a heinous attack against war resisters and shows that the proxy war in Ukraine is about capitalist rivalry first and foremost.

Sam Carliner

March 26, 2023