Costco Wins Younger Shoppers With Expanded Third-Party Same-Day Delivery

Costco has gained younger customers through its expanded third-party same-day delivery service, CEO Ron Vachris revealed during the company's latest earnings call. Costco highlighted the expansion of third-party same-day delivery channels in the U.S. in a presentation, stating that it offers products delivered within an hour from DoorDash, Instacart, and Uber Eats.

Vachris explained that this offering is particularly appealing to younger customers who appreciate the immediacy of delivery, and that these customers tend to use the service for fill-in shopping between store visits. Costco's digitally enabled sales saw a 19.5% increase year-over-year in the most recent quarter and a 20.9% increase during the most recent fiscal year, according to a press release.

DoorDash, Uber Technologies, and Instacart have all expanded their partnerships with Costco, offering same-day delivery through their respective platforms in various U.S. states. Vachris emphasized that these partnerships complement Costco's successful long-term partnership with Instacart and that the average delivery time across all three platforms is under an hour, providing increased convenience for Costco members.