Key facts
- Costco now offers delivery through DoorDash, Uber Eats, and Instacart.
- DoorDash and Uber Eats expanded their partnerships with Costco last week.
- Uber Eats and DoorDash prices were about 12% and 11% higher than store prices, respectively.
- Instacart prices were 24% higher than store prices.
- With fees and taxes, DoorDash was the cheapest delivery option at $328.27 for 15 items, followed by Uber Eats at $373.20 and Instacart at $419.36.
- A temporary $50 discount on Costco orders through DoorDash made it the cheapest option.
Costco is expanding its delivery options, now partnering with DoorDash and Uber Eats in addition to its long-standing relationship with Instacart. The move aims to cater to a younger demographic and provide convenience for members who need a few items between larger shopping trips.
A cost comparison of 15 common Costco items revealed significant price differences among the delivery platforms. When considering only the item prices, Uber Eats and DoorDash showed markups of approximately 12% and 11% respectively, compared to in-store prices. Instacart's markup was considerably higher, at 24%.
When all costs, including taxes, fees, and a 5% tip, were factored in, DoorDash emerged as the cheapest option, largely due to a temporary $50 discount on Costco orders. Without the discount, its total cost would have been higher. Instacart remained the most expensive, with its total cost being about 32% more than shopping in-store.
Costco CEO Ron Vachris noted that delivery customers tend to be younger than the overall membership base and use the service for smaller, more frequent purchases. The convenience of delivery can be particularly valuable for shoppers who find it difficult to transport bulky items or who live far from a Costco location.