At Shyp, we are dedicated to constant iteration of our product. We look at everything we build with the lens of, how can we make this better? It’s been just over a year since we launched out of beta. As we gear up for national expansion, it’s a good time to look at our current model and see how we can improve it.
After careful consideration, we’ve decided to transition Shyp couriers, the individuals who complete pickups at our customers’ homes and offices, to W2 employees. This move is an investment in a longer-term relationship with our couriers, which we believe will ultimately create the best experience for our customers.
Here at Shyp, we have three different roles that make up the workforce that creates the awesome Shyp experience that we’ve become known for. We have couriers (handle pickups), satellite van drivers (take items to warehouse) and those in the warehouse (handle packing and shipping, etc.). This move does not impact our satellite drivers or warehouse employees, who have been classified as W2 since Shyp launched in March of 2014, due to the specific responsibilities of their role.
This is an operational decision based on our interest in owning the entire, end-to-end Shyp experience; it is not in response to recent lawsuits against other technology companies. We’re doing this because we want to make the Shyp experience as good as it can be, for our customers and workforce alike. Our couriers interact directly with our customers more than anyone else. They pick up valuable items and make sure they get safely to our satellite drivers, who then get them to our warehouse.
As a rapidly growing business, we want to ensure that each time a customer uses Shyp they have an incredible experience. For this reason, we want to provide our couriers with additional supervision, coaching, branded assets and training, which can only be done with employees, so a shift is needed. We want to continue developing relationships with our couriers, empowering them to take on increasing amounts of responsibilities in each market.
Newly classified W2 couriers will now get workers’ compensation, and we will pay for their vehicle expenses, in addition to their unemployment, Social Security, and Medicare taxes, just like we do for our satellite drivers and warehouse employees. Depending upon hours worked, we will provide additional benefits such as health care.
Our operations and HR teams are under way implementing a transition plan for our existing, active markets. We plan to have our network of active couriers transitioned to W2 shortly.
All new Shyp markets, including Chicago, which will launch later this summer, will have this new structure implemented.
This is a huge step forward for Shyp and we can’t wait for you to see what we do next.