Shipt Plans Birmingham, Alabama Expansion in Tech and Workforce
The expansion comes amid a strategic push by the Birmingham-based company to add new retail partners and speed the rollout of its marketplace delivery service across the United States. The hiring will increase Shipt’s corporate workforce to more than 1,000 people over several years.
“By simplifying life with innovative technology for personalized grocery delivery, Shipt is positioned for rapid growth,” Governor Kay Ivey said. “The ideal location for this growth is its hometown of Birmingham, and we’re committed to helping the company develop and attract the talent it needs to fuel its expansion plans in Alabama’s ‘Magic City'."
Shipt Founder & CEO Bill Smith said the company is actively recruiting across all departments and focusing its continuous growth.
“Shipt was founded and has flourished in Birmingham, and we would not have reached the success we have today without the continued support of this community,” Smith said. “As a rapidly growing technology company, we feel fortunate to be able to offer an avenue for creating highly skilled jobs within Birmingham.
“With this development package, we’ll be able to deepen our roots in our hometown, helping establish Birmingham as a center of technology and innovation not only in the South, but also within the United States,” he added.
As an incentive, the City of Birmingham will invest up to $1.7 million to support Shipt’s growth strategy through programs aimed at professional skill development, hiring local talent, and attracting software engineers and data scientists. In addition, Shipt will also receive support from AIDT, the state’s primary workforce development agency, for recruitment assistance, talent development services and on-the-job training, as well as tax credits under the Alabama Jobs Act.
Target Corp. acquired Shipt in December 2017; The company is already playing a key role in Target’s plans to offer convenient, same-day deliveries from the majority of its stores. Shipt also partners with a number of additional retailers.
“Shipt is a highly successful company that sprang from Birmingham’s innovation environment, and its decision to accelerate its growth in the city speaks volumes about the potential they see for growth there,” said Greg Canfield, Secretary of the Alabama Department of Commerce. “We hope this becomes a signpost project that leads the way for the growth of innovation opportunities in Birmingham and across the state.”
Jefferson County Commissioner David Carrington said Shipt’s growth reflects the emergence of a budding information technology ecosystem in the Birmingham metro area. The commission has pledged a cash incentive tied to Shipt’s hiring.
“With the acquisition of Shipt by Target last December, the company easily could have expanded in Silicon Valley, where Shipt already has a presence, or Minneapolis, Target’s headquarters,” Carrington said. “Instead, the company’s commitment to add another 881 jobs over the next several years in Birmingham bodes well for the future of both the company and the community.”
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