Costco now offers nationwide delivery on Uber and DoorDash
The wholesaler expanded its partnerships with both e-commerce providers at a time when same-day delivery is proving a powerful force in resonating with its shoppers.
Instacart faces growing competition from Uber Eats and DoorDash as both companies announce new partnerships with Costco, intensifying the battle for grocery delivery dominance. Costco's expanded relationships with the delivery services could disrupt Instacart's existing partnerships that have been in place since 2017. Uber CEO Dara Khosrowshahi and DoorDash CEO Tony Xu have emphasized the potential of grocery and retail sales as a multi-trillion-dollar opportunity.
Meanwhile, Amazon is also expanding its own grocery delivery capabilities, posing a significant challenge to Instacart and its competitors. Costco's in-store traffic has grown by 18% over the past seven years, outpacing Walmart and Target, making it a valuable addition to the delivery services' offerings. Instacart has already begun offering special credits to Costco executive members, strengthening its relationship with the retailer and appealing to customers seeking extra value.
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