Costco pilots grocery delivery with Uber

Costco Wholesale has begun testing same-day online grocery delivery with Uber Technologies in Texas.

San Francisco-based Uber said Wednesday that grocery deliveries via the Uber and Uber Eats mobile apps and websites are being piloted at 25 Costco warehouse clubs in the Dallas, Austin and Houston markets. Plans call for another seven Costco clubs to launch the Uber delivery service in the coming weeks.

At the participating clubs, Uber grocery delivery is available to Costco members placing orders of at least $35. Delivery is free for Uber Pass and Eats Pass holders.

“Our mission statement at Costco is to take care of our members. By finding solutions to deliver merchandise quickly and efficiently, we continue to offer our members value, convenience and member service,” Ron Vachris, executive vice president of merchandising at Costco, said in a statement.

For Costco, Uber marks its second third-party partner for same-day grocery delivery. The Issaquah, Wash.-based wholesale club chain offers same-day delivery through Instacart at all of its more than 550 mainland U.S. clubs. Costco also offers its own two-day delivery service for non-perishable groceries and household essentials, as well as a separate delivery service (two-day delivery on weekdays) for cold and frozen food.

Related:Uber Eats extends grocery delivery reach with Albertsons

Uber noted that Costco represents its first pilot with a wholesale club chain in the United States.

“One thing we know to be true is that people across the United States are looking for convenient and affordable ways to stock their pantries without leaving home, especially for last-minute, must-have items,” commented Raj Beri, head of grocery delivery for Uber. “Today’s announcement with Costco is an important step towards marrying the magic of wholesale retail with on-demand delivery in the palm of your hand, and I’m thrilled that Texans are getting a first look at what's to come.”

The announcement of the test with Costco comes two days after Uber unveiled a partnership with Albertsons Cos., the nation’s second-largest supermarket operator, to roll out same-day delivery to 1,200 stores this year. Uber said the Albertsons partnership signals its first major grocery expansion in the United States, more than doubling the same-day service’s reach to over 400 cities and towns since its launch last July.

Uber Eats grocery delivery also is available in major markets such as Miami, Dallas, New York City, San Francisco, Phoenix and Washington, D.C., and through regional and local supermarket retailers like Southeastern Grocers and New York’s Red Apple Group.

Related:Costco rolls out Instacart same-day delivery across Canada