Gig Workers for Target’s Delivery App Hate Their Algorithmically-Determined Pay
In 2017 Target bought a same-day home-delivery company called Shipt for $550 million. Shipt now services half of Target’s stores, reports Motherboard, and employs more than 100,000 gig workers.
Unfortunately, they’re working for a company that “has a track record of censoring and retaliating against workers for asking basic questions about their working conditions or expressing dissent,” reports Motherboard. For example, an hour after tweeting about how there was now much more competition for assignments, one Seattle gig worker found their account suddenly “deactivated” — the equivalent of being fired — and also received an email saying they were no longer “eligible to reapply”.
“They stamp out resistance by flooding the market with new workers…” complained one Shipt worker, “and they’re actively monitoring all the social media groups. ”
On its official national Facebook group, known as the Shipt Shopper Lounge, which has more than 100,000 members, Shipt moderators selected by the company frequently censor and remove posts, turn off comments sections, and ban workers who speak out about their working conditions, according to screenshots, interviews, and other documentation provided to Motherboard. The same is true on local Facebook groups, which Shipt also monitors closely, according to workers. Motherboard spoke to seven current Shipt workers, each of whom described a culture of retaliation, fear, and censorship online…
Because Shipt classifies its workers as contractors, not employees, workers pay for all of their expenses — including gas, wear and tear on their cars, and accidents — out of pocket. They say the tips on large orders from Target, sometimes with hundreds of items, can be meager. Workers say Shipt customers often live in gated and upscale communities and that the app encourages workers to tack on gifts like thank you cards, hot cocoa, flowers, and balloons onto orders (paid for out of their own pocket) and to offer to walk customer’s dogs and take out their trash, as a courtesy. Shipt calls this kind of service “Bringing the Magic,” which can improve workers’ ratings from customers that factor into the algorithm that determines who gets offered the most lucrative orders…
Unfortunately, that new algorithm (which began rolling out last year) is opaque to the workers affected by it — though Gizmodo reported pay appears to be at least 28% lower. And Motherboard heard even higher estimates:
“Our best estimate is that payouts are now 30 percent less, and up to 50 percent on orders,” one Shipt worker in Kalamazoo with two years under her belt, who wished to remain anonymous for fear of retaliation, told Motherboard. “I fluctuate between extreme anger and despair. It’s been three weeks since this has been implemented, and one of my good friends told me that she’s down the equivalent of a car payment.”
Another Shipt worker in Palm Springs, California provided Motherboard with receipts for a 181-item order that included six Snapple cases, five La Croix cases, and 12 packs of soda. They had to wheel three shopping carts out of a Ralph’s grocery store and deliver them — and earned $12.68 for the job. The customer did not tip. (Under the older, more transparent pay model, they would have earned $44.19.) “That’s a real slap in the face,” they told Motherboard.