US – Rideshare and e-commerce company Uber has announced an expanded partnership with retailer Costco, which will see the retailer present on Uber Eats in various locations in Japan, Mexico, Canada, and the US.
This strategic move aims to give Uber a competitive advantage over rivals DoorDash and Instacart.
As part of the partnership, Costco members will enjoy exclusive savings on Uber Eats orders and receive a 20% discount on an annual Uber One membership.
By entering their membership number in the Uber Eats app, Costco members can access these deals on Costco’s storefront page or at checkout. These value deals mirror similar offers from Instacart, reflecting the competitive nature of the market.
The partnership will also introduce the new Uber Caregiver feature, designed to make adult caregiving more efficient.
This feature is akin to Instacart’s care carts launched in 2022, which allow caregivers and healthcare providers to order groceries on behalf of others.
Uber and Costco’s collaboration began in 2021 with a pilot delivery service in 25 locations, offering Costco members grocery deliveries in less than an hour.
Costco has also maintained a long-standing relationship with Instacart, launching same-day delivery services in Canada in 2020, where Costco members could receive an Instacart+ membership at a reduced price of US$79.
This partnership highlights the fierce competition in the e-commerce and grocery market. Despite this, Instacart has emphasized the importance of collaboration among industry players to enhance service offerings.
Recently, Instacart entered the restaurant delivery business through a partnership with Uber Eats, highlighting a diversification and collaboration strategy crucial for the growth of e-commerce in the food industry.
In the coming weeks, Instacart customers nationwide will be able to use the Instacart app to order from hundreds of thousands of restaurants, powered by Uber Eats.
The new “Restaurants” tab in the Instacart app will offer a user-friendly interface, allowing consumers to choose from nearby restaurants, browse menus, place orders, and track deliveries in real-time.
Grocery orders will be fulfilled by Instacart and its shopper community, while restaurant orders will be handled by Uber Eats and its couriers. Instacart+ members will benefit from US$0 delivery on grocery and restaurant orders over US$35 at no additional cost.
“Our goal is to make it effortless for people to go anywhere and get anything,”said Dara Khosrowshahi, CEO of Uber.
“We’re excited that this new strategic partnership with Instacart will bring the magic of Uber Eats to even more consumers, drive more business for restaurants, and create more earnings opportunities for couriers.”
For Uber, powering restaurant delivery in the Instacart app is a way to drive more orders to Uber Eats restaurant partners and extend its leading restaurant selection to millions of customers across the U.S., including families in suburban markets that use Instacart.
This partnership also supports brick-and-mortar businesses by helping restaurants and retailers grow, increasing their opportunities to reach new customers online, and driving more sales through an enhanced Instacart experience.
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