Scoop: Alabama offered millions to Shipt for its expansion. Five years later, it hasn’t paid a penny because Shipt hasn't met its hiring goals.
Aug. 11, 2023, 8:37 a.m.A rendering shows Shipt tower in downtown Birmingham, where the company's headquarters are based.When Shipt decided to keep its headquarters in Birmingham in 2018, the state and local governments agreed to pay the company at least $19 million in combined cash incentives and tax breaks, if it met goals of hiring hundreds of corporate workers and investing in its local presence.
In response, the government has withheld most of those promised incentives – with the city, Jefferson County and the state’s workforce development agency paying just under $3 million, combined. Now, Shipt says it won’t ask for anymore public funds. “The company requested to terminate the agreement because they no longer expected to have the jobs they committed to,” Jones toldJulie Coop, a spokeswoman for Shipt, said the company’s business model through same-day delivery looked a lot different before the Covid pandemic. Now, she said, the company wants to allow Birmingham, Jefferson County and the state of Alabama to “reallocate those funds” to other companies.
Through its agreement with Alabama Industrial Development Training, the state’s workforce development agency, Shipt received $1.1 million in funds for its job training and recruitment efforts, the company said. That program is now closed, after 760 employees received 160 hours of the on-the-job training.
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