Costco Testing Uber Delivery in Texas

Wholesaler offers service with tech company in 25 locations across state, with eye on expansion

7/21/2021

Uber users in Dallas, Austin and Houston, Texas, can now order groceries from their local Costco.

Days after Uber Technologies Inc. revealed its first national grocery partnership in the United States with Albertson's Co., the tech company has made another strategic move in its burgeoning grocery delivery efforts by entering a delivery pilot with Costco Wholesale Corp. at 25 locations in Texas.

Starting July 21, Uber users in Dallas, Austin and Houston can order from their local Costco warehouses. Over the coming weeks, seven additional Costco warehouses will be available to Uber users via the Uber and Uber Eats mobile apps. This is Uber's first pilot with a food wholesaler in the United States.

Costco currently offers online ordering and delivery through its own channels and additional third parties.

"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's EVP, merchandising.

Costco members can have their groceries delivered within hours, if not minutes, with Uber. The minimum order amount is $35, and delivery is free for Uber Pass and Eats Pass holders.

Since launching in July 2020, Uber's grocery category has seen consistent growth in the United States. The company's recent partnership with Albertsons Co. more than doubled the availability of its grocery offering, with the addition of more than 400 cities and towns, including San Francisco and Phoenix.

"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, head of grocery delivery at San Francisco-based Uber. "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."

Issaquah, Wash.-based Costco operates 809 warehouses worldwide. The company, which is No. 4 on Progressive Grocer’s 2021 PG 100 list of the top food and consumables retailers in North America, also has e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea and Taiwan. Boise, Idaho-based Albertsons is No. 8 on The PG 100.