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Costco, Instacart pilot prescription drug delivery

Two-state test marks delivery specialist’s foray into pharmacy

Russell Redman

November 7, 2019

2 Min Read
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Costco Wholesale Corp. is testing prescription drug delivery via Instacart in California and Washington.

San Francisco-based Instacart confirmed news of the pilot, first reported yesterday by CNBC. Under the test, still in its early stages, Costco pharmacy customers can get same-day delivery of prescriptions along with groceries and staple household products, in as soon as an hour.

Prescription delivery is free for orders of $35 or more for customers with a Costco or an Instacart membership, according to Instacart.

“Part of grocery shopping for many also includes picking up much-needed medication. Convenience is important to Instacart customers, and we’re always exploring new ways to partner with retailers to connect customers to the brands they love and the goods they depend on,” Instacart said in a statement.

Instacart said Costco customers ordering prescriptions for delivery must be age 18 or older and enter their birthdate at checkout, as well as present a valid government ID at the time of delivery. Instacart sets a default tip amount of 5% of the order total, with a minimum of $2, which a customer can raise or lower.

To deliver prescriptions, Instacart personal shoppers must complete online HIPAA certification. Prescription orders picked up from Costco come in a sealed, tamper-proof bag, and personal shoppers don’t know what medications are in the bag they’re delivering, Instacart noted.

Related:Costco makes strides with grocery, omnichannel initiatives

Costco declined to comment on the prescription delivery pilot with Instacart. The Issaquah, Wash.-based warehouse club chain first partnered with Instacart in February 2016 and now offers Instacart grocery delivery via all of its 500-plus U.S. clubs. As of the end of 2018, Costco was the 10th-largest U.S. pharmacy, with estimated prescription revenue of $2.6 billion, according to the Drug Channels Institute.

The pilot with Costco signals Instacart’s first foray into prescription drug delivery. Instacart provides delivery service to the three largest U.S. drugstore chains (CVS Pharmacy, Walgreens and Rite Aid) and Canada’s biggest drug chain (Shoppers Drug Mart) but not for prescription medicines.

Rival Shipt, owned by Target Corp., began providing same-day delivery of prescriptions for CVS in early April. All pharmacies in Target stores are operated by CVS, which acquired the discount chain’s pharmacy and clinic business in December 2015. Walgreens launched next-day prescription delivery this past December under a partnership with Federal Express. Walmart provides delivery of prescriptions through its own service.

Related:Shoppers Drug Mart goes national with Instacart grocery delivery

Pharmacy retailers stepped up efforts to launch prescription delivery services following Amazon’s acquisition of online pharmacy PillPack in June 2018. PillPack’s service, however, specializes in prescheduled delivery of maintenance medications, with customers on multiple prescriptions receiving their medicines sorted by date and time.

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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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