Montgomery, Ala. -- On Thursday, July 12, Gov. Kay Ivey and local officials joined executives of Shipt, a same-day delivery company, to announce the company's plans to create over 800 jobs in Birmingham over the next few years, vastly growing the state's technology industry.
“By simplifying life with innovative technology for personalized grocery delivery, Shipt is positioned for rapid growth,” Gov. 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.’”
This expansion works as part of an overall economic expansion package that the city of Birmingham is working on. The city has committed $1.7 million to support Shipt's growth strategies that involve programs seeking to develop professional skills, hire local talent and bring data engineers and data scientists to the city.
The growth of the Shipt is a part of their strategic push to bring new retail partners to the company and their efforts to grow their company across the United States. The company's growth will bring more than 1,000 people to their corporate workforce over the next few years.
"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," said CEO and founder Bill Smith. "As a rapidly growing technology company, we feel fortunate to be able to offer an avenue for creating highly skilled jobs within Birmingham."
During a formal announcement made on Thursday at the company's headquarters, Smith added that the company will continue to be actively in search for new talent company wide and will be focusing on its continued expansion throughout Birmingham. He also mentioned that they will be primarily recruiting employees from the city and the outskirts of the area.
“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," said Smith.
Shipt was founded in Birmingham in 2014 as a membership-based online grocery delivery service that could deliver fresh food and several other items through a community of shoppers and their easy-to-download app. Since beginning only four years ago, Shipt is now available to almost 50 million households in over 150 markets throughout the U.S.
Target Corporation acquired the company in 2017, and the company has played a key role in Targets plans to develop a same-day delivery from its stores. Target is just one of the many retail stores that Shipt has teamed up with.
The Alabama Department of Commerce has estimated that Shipt's expansion will bring over $1.1 billion in new payroll over the next 20 years.
“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.”
AIDT, Alabama's primary workforce development agency, will be assisting Shipt in their job-creation plans. This support will include recruitment assistance, talent development services and on-the-job training, in addition to tax credits under the Alabama Jobs Act.
Jefferson County Commissioner David Carrington said that this expansion represents the growing information technology environment that is growing within Birmingham.
“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."
