International grocery giant Costco isn’t going to sit back and watch as instant-delivery startups rush into the grocery space. Through a new pilot project with Uber, the Washington-based big-box retailer is testing rapid delivery at 25 locations across the state of Texas where Costco members could have their groceries “delivered within hours, if not minutes” through Uber and Uber Eats.
Over the coming weeks, seven additional Costco warehouses 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 United States.
This news follows Uber’s recent announcement of its first national grocery partnership in the U.S. with Albertson’s, which more than doubled Uber’s grocery offering, with the addition of more than 400 cities and towns, including San Francisco and Phoenix.
Uber said Costco’s commitment to sourcing quality products make the company an ideal partner for its growing grocery delivery efforts. Since launching in July 2020, Uber has seen consistent growth in the U.S. for its grocery category. Major U.S. metro areas now include Miami, Dallas, New York City, San Francisco, Washington D.C., and Phoenix with more to come throughout 2021.
“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’s 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.”
Costco currently offers online ordering and delivery through its own channels and additional third parties.
