Costco expanded delivery services in the United States. [Photo: Shutterstock]

[DigitalToday reporter Jae-won Choi] U.S. warehouse retailer Costco has expanded delivery services through DoorDash and Uber Eats, intensifying competition in the grocery delivery market. Instacart, which has worked with Costco since 2017, is also facing new competitive pressure.

On Sept. 17 (local time), Business Insider reported that Costco began same-day delivery through DoorDash for all of its stores in the United States. A day earlier, it expanded the Uber Eats service area from 17 states to 47 states where Costco has stores. About 600 stores are available to order from on Uber Eats.

DoorDash users can link a Costco membership to their accounts to order about 4,000 items, including groceries, household goods and electronics. Costco operates 639 stores in 47 U.S. states.

The partnership comes as food delivery companies broaden their businesses. DoorDash and Uber Eats are expanding beyond restaurant deliveries into groceries and household goods. Uber CEO Dara Khosrowshahi (다라 코스로샤히) in February cited groceries and other retail sales as a $1 trillion business opportunity. Amazon is also expanding fast grocery delivery using its own logistics network, widening the competitive landscape.

Costco is an attractive partner for delivery firms. The outlet reported that Costco store visits rose 18 percent over the past seven years, while visits to Walmart and Target largely stagnated. DoorDash also said Costco was among retailers not listed on its app that drew a high volume of searches.

Instacart is responding by highlighting existing partnerships and membership benefits. It offers Costco Executive members a $10 monthly credit for delivery orders of $150 or more. Costco’s partnership with Instacart has not ended, but competition to win customers is expected to intensify further as delivery options increase.

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#Costco #DoorDash #Uber Eats #Instacart #Amazon
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