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07/21/2021

Costco pilots same-day grocery delivery with Uber

Dan Berthiaume
Senior Editor, Technology
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Uber is announcing its second major grocery delivery partnership of the week.

Costco has entered a delivery pilot with 25 locations across the state of Texas, enabling its members to have their groceries delivered within hours, if not minutes, with Uber and Uber Eats. The initial pilot stores are located in the Dallas, Austin, and Houston markets. Over the coming weeks, seven additional Costco stores will be available to Uber users via the Uber and Uber Eats mobile apps. 

The minimum order amount is $35 and delivery is free for Uber Pass and Eats Pass holders. This is Uber's first pilot with a food wholesaler in the U.S. However, on Monday, July 19, Uber launched a same-day grocery delivery partnership with Albertsons Cos. across 1,200 stores. 

Costco currently offers online ordering and delivery in the U.S. through its own channels and additional third parties, including Shipt. The retailer also offers same-day delivery of prescriptions in the U.S. via Instacart, and partners with Instacart for same-day delivery of its full assortment in Canada.

Uber users will find grocery and essentials products from participating Costco locations when they open the Costco storefront in Uber and Uber Eats. Uber initially rolled out its U.S. grocery delivery service in July 2020. Other partners include regional supermarket retailers Southeastern Grocers and Red Apple Group.

"Our mission statement at Costco is to take care of our members. By finding solutions to deliver merchandise quickly and efficiently, we continue to offer our members value, convenience and member service," said Ron Vachris, Costco executive VP, merchandising.

"One thing we know to be true is that people across the United States are looking for convenient and affordable ways to stock their pantries without leaving home—especially for last-minute must-have items," said Raj Beri, Uber head of grocery delivery. "Today's announcement with Costco is an important step towards marrying the magic of wholesale retail with on-demand delivery in the palm of your hand, and I'm thrilled that Texans are getting a first look at what's to come."