When Birmingham-based Shipt was acquired for $550 million by retailer Target in late 2017, there was a real chance that the homegrown company would end up leaving the city and taking hundreds of tech jobs with it. After all, Target was looking to utilize Shipt’s technology as its home-delivery platform nationwide.
The Shipt expansion is not only creating new jobs but also anchoring its current workforce, totaling around 300, in Birmingham.
“Shipt represents the innovation, ingenuity and entrepreneurial spirit that is defining a new generation of builders in Birmingham, and we are proud that Shipt calls our city home,” Birmingham Mayor Randall Woodfin said.
The economic impact of Shipt’s growth will be significant. An analysis by the Alabama Department of Commerce estimates the financial benefits of Shipt’s expansion project over 20 years:
- Total new payroll: $1.1 billion (permanent jobs)
- Total new state revenue: $100.5 million
- Return on investment to state: 529%
“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.”