Shipt to Launch Alabama's First Portable Benefits Program for Shoppers
Portable benefits program to allow shoppers with Shipt to receive contributions that support financial goals, maintain work schedule flexibility
BIRMINGHAM, Ala., Aug. 19, 2025 /PRNewswire/ -- Shipt will soon launch a portable benefits program in its home state of Alabama, and for the first time, thousands of app-based workers in the state will have access to additional benefits without compromising the work schedule flexibility they desire.
Building on a successful rollout in Utah, Shipt is excited to expand this program to Alabama. Starting October 1, shoppers in the state can begin qualifying to open a Stride Save1 account with the portable benefits platform, Stride. The first quarterly qualification period runs from October 1 to December 31, 2025, just in time for the new Alabama Portable Benefits Act to take effect and pave the way for shoppers to begin receiving contributions from Shipt as soon as January 2026.
Through this program, Shipt will contribute the equivalent of 4% of eligible shoppers' pre-tip earnings to their account per quarterly qualification window.2 These contributions are tax-deductible in Alabama and can be put toward benefits that matter most to them, such as health, dental, and vision insurance, or even less traditional benefits like tuition reimbursement or retirement savings.
"We hear it from shoppers and drivers all the time: nothing beats a flexible work schedule," said Mindy Reher, vice president of experiential operations at Shipt. "As a people-centric company, we take pride in finding innovative solutions to offer workers on our platform greater access, choice, and security in how they work. Alabama shoppers can now further build toward their financial goals without compromising on the flexibility they get from earning on the Shipt platform."
Flexibility and the freedom to choose when, where, and how often to work are critical for so many shoppers and drivers with Shipt, with more than 90 percent preferring flexibility over a set schedule and hours. Shoppers and drivers overwhelmingly prefer to maintain flexibility as independent contractors with the option to accrue portable benefits over being an employee with a standard benefits package.3
Since some app-based workers earn across multiple platforms, the program allows benefit contributions to follow their work onto those other apps, offering Alabama shoppers more flexibility and freedom to earn contributions from other eligible apps without typical employment restrictions.
Legislation to allow for a portable benefits program in Alabama, Portable Benefits Act SB 86, received bipartisan support in the state legislature when it passed earlier this year, and could pave the way for similar legislation in other states and at the federal level.
"This moment marks a historic milestone for Alabama's workforce," said State Sen. Arthur Orr, chief sponsor of the Alabama Portable Benefits Bill, SB 86. "Thousands of Alabama independent contractors now have voluntary access to benefit contributions and a wide array of benefits to further secure their financial independence and support their families. This is about empowering people to build their own financial safety nets in a flexible, modern economy."
Rep. Neil Rafferty, who championed the companion bill in the House, added, "This bipartisan effort recognizes that work is changing, and our laws must change with it. Alabama is now a leading voice in the nation, allowing portable benefits contributions that are fully tax-deductible for both businesses and workers. That incentive not only brings real economic value, but sends the message: independent workers matter in this state."
"Alabama has accelerated Portable Benefits policy by becoming the first state to make contractor benefits both legal and tax-deductible," said Noah Lang, Co-founder and CEO at Stride. "By creating tax parity between this modern benefits system and our country's outdated employee-only system, Alabama has also created fresh incentives for companies to contribute to independent workers' benefits. Shipt has wasted no time in being the first to do so in Alabama, and Stride is thrilled to expand our programs to support them in doing so."
1Shoppers must earn $750 or more, before tips, during a qualification window to qualify. Stride Savings LLC is a financial technology company and is not a bank. Banking services are provided by i3 Bank, Member FDIC. The Stride Mastercard Debit Card is issued by i3 Bank pursuant to a license from Mastercard, Inc. and may be used anywhere Mastercard cards are accepted. |
2 Shipt will contribute 4% (up to $300) of eligible shoppers' pre-tip earnings per qualification window. Shoppers who do not create their Stride Save account and/or do not sign up to receive funds within 30 days after the end of the qualifying period will forfeit any potential Shipt contribution from that qualifying period. |
3Based on a 2024 survey of 5,000 shoppers and drivers with Shipt. |
About Shipt
Shipt is a retail-tech company connecting people to reliable, high-quality delivery with a personal touch. Through the power of technology, Shipt connects customers to the things they want from the stores they love, workers to new earning opportunities, and retail businesses to more satisfied customers. Shipt is an independently operated subsidiary of Target Corp. For more information, visit Shipt's Newsroom.
About Stride
Stride is the first portable benefits platform designed for the over 72 million American independent workers without employer-based benefits. Stride works with over 130 companies to deliver portable benefit contribution programs and deliver access to insurance, financial savings, and tax and expense tracking tools. Stride has helped 4.4 million people save over $8 billion on insurance premiums and taxes.
SOURCE Shipt
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