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Costco pilots grocery delivery with Uber

Test to expand to 32 club locations across Texas

Russell Redman

July 21, 2021

2 Min Read
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At the participating clubs in Dallas, Austin and Houston, Uber grocery delivery is available to Costco members placing orders of at least $35.Costco

Costco Wholesale has begun testing same-day online grocery delivery with Uber Technologies in Texas.

San Francisco-based Uber said Wednesday that grocery deliveries via the Uber and Uber Eats mobile apps and websites are being piloted at 25 Costco warehouse clubs in the Dallas, Austin and Houston markets. Plans call for another seven Costco clubs to launch the Uber delivery service in the coming weeks.

At the participating clubs, Uber grocery delivery is available to Costco members placing orders of at least $35. Delivery is free for Uber Pass and Eats Pass holders.

“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,” Ron Vachris, executive vice president of merchandising at Costco, said in a statement.

For Costco, Uber marks its second third-party partner for same-day grocery delivery. The Issaquah, Wash.-based wholesale club chain offers same-day delivery through Instacart at all of its more than 550 mainland U.S. clubs. Costco also offers its own two-day delivery service for non-perishable groceries and household essentials, as well as a separate delivery service (two-day delivery on weekdays) for cold and frozen food.

Related:Uber Eats extends grocery delivery reach with Albertsons

Uber noted that Costco represents its first pilot with a wholesale club chain in the United States.

“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,” commented Raj Beri, head of grocery delivery for 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.”

The announcement of the test with Costco comes two days after Uber unveiled a partnership with Albertsons Cos., the nation’s second-largest supermarket operator, to roll out same-day delivery to 1,200 stores this year. Uber said the Albertsons partnership signals its first major grocery expansion in the United States, more than doubling the same-day service’s reach to over 400 cities and towns since its launch last July.

Uber Eats grocery delivery also is available in major markets such as Miami, Dallas, New York City, San Francisco, Phoenix and Washington, D.C., and through regional and local supermarket retailers like Southeastern Grocers and New York’s Red Apple Group.

Related:Costco rolls out Instacart same-day delivery across Canada

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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