Key facts
- DoorDash and Uber Eats are expanding their grocery delivery services to include Costco across the US.
- Instacart has been Costco's same-day delivery partner since 2017.
- Uber Eats expanded its partnership with Costco to 47 states.
- DoorDash will offer Costco delivery across the US.
- Uber CEO Dara Khosrowshahi sees grocery and retail sales as a "trillion-dollar opportunity."
- DoorDash CEO Tony Xu believes partnerships with grocers give it an edge over Amazon's delivery network.
DoorDash and Uber Eats are significantly expanding their grocery delivery services by deepening partnerships with Costco, a move that could challenge Instacart's long-standing relationship with the warehouse retailer. DoorDash announced it would offer delivery across the US for Costco, building on existing collaborations in Puerto Rico and some international markets. Simultaneously, Uber Eats has broadened its partnership with Costco to 47 states, up from 17 previously. These expanded agreements represent a strategic push by DoorDash and Uber Eats, which initially focused on restaurant deliveries, to capture a larger share of the lucrative grocery market. Uber CEO Dara Khosrowshahi has identified grocery and other retail sales as a "trillion-dollar opportunity," while DoorDash CEO Tony Xu has highlighted the company's grocer partnerships as a competitive advantage against Amazon's expanding grocery delivery capabilities. Unlike Amazon, which is building its own logistics network, DoorDash, Uber Eats, and Instacart primarily rely on gig workers to fulfill orders from existing retailers. Costco's popularity, with an 18% increase in in-store visits over the past seven years, makes it a particularly attractive addition to these delivery platforms' offerings. Costco was identified as one of the most-searched retailers not yet available on DoorDash. Instacart, which has partnered with Costco since 2017, has been working to deepen its relationship by offering benefits to executive members.