Shipt will introduce a portable benefits program for its Alabama shoppers, beginning October 1, 2025. The initiative allows eligible workers to qualify for a Stride Save account through the Stride platform, in line with the new Alabama Portable Benefits Act set to take effect in January 2026.
The program enables app-based companies like Shipt to contribute funds toward benefits such as health, dental, or vision insurance. Workers can also use these contributions for retirement savings or tuition reimbursement. Because the benefits are portable, workers can combine contributions from multiple platforms.
According to Shipt, more than 90 percent of its shoppers and drivers prefer flexible work arrangements over traditional employment schedules. Eligible Alabama shoppers earning with Shipt will be able to receive company contributions equal to 4% of their pre-tip earnings. These tax-deductible contributions can be used by workers to purchase the benefits they choose without affecting their independent contractor status.
“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.”
Noah Lang, Co-founder and CEO at Stride, commented on Alabama’s approach: “Alabama has accelerated Portable Benefits policy by becoming the first state to make contractor benefits both legal and tax-deductible. By creating tax parity between this modern benefits system and our country’s outdated employee-only system, Alabama has also created fresh incentives for companies to contribute to independent workers’ benefits.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.”
Earlier this year, Alabama passed SB 86—the Portable Benefits Act—which allows voluntary and tax-advantaged contributions by companies and workers into portable benefit accounts. State Sen. Arthur Orr said about the legislation: "This moment marks a historic milestone for Alabama’s workforce. 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 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.”
The launch follows Shipt's pilot program in Utah as part of its broader efforts encouraging other states to consider similar legislation supporting flexible work options.