Costco is significantly expanding its delivery capabilities by taking its partnership with Uber Eats nationwide, a move that will make the warehouse retailer’s extensive product selection available for delivery through the popular app at nearly 600 locations across all 47 states where Costco operates. This nationwide rollout builds upon an initial pilot program that had been in place in 17 states, signaling a substantial commitment to enhancing same-day and last-mile delivery services for its members. While Instacart remains a crucial component of Costco’s digital fulfillment network, the broadening of its delivery alliances underscores a strategic effort to offer greater convenience and accessibility.
The expansion was highlighted during Costco’s fiscal Q2 2026 earnings call in March, where Chief Financial Officer Gary Millerchip reported robust growth in same-day delivery services, which encompass partnerships with Instacart, Uber Eats, and DoorDash. These delivery channels are reportedly growing at a faster pace than Costco’s overall digital sales, which themselves saw a healthy year-over-year increase of 22.6%. This data point is particularly significant, indicating that same-day delivery is not merely an incremental service but a key driver of Costco’s e-commerce growth and member engagement. Costco holds a prominent position in the retail landscape, ranking seventh in Digital Commerce 360’s Top 2000 Database of North America’s largest online retailers by annual e-commerce sales, and fourth among Mass Merchants.
Deeper Integration and Member Benefits Drive Nationwide Rollout
The newly expanded Uber Eats partnership allows Costco members to access the full range of products available in their local warehouse for delivery. The process is designed for seamless integration: members can simply input their Costco membership number into the Uber Eats app to begin shopping. They are then presented with options for both on-demand and scheduled deliveries, catering to a variety of consumer needs and preferences. This level of access is expected to significantly broaden the appeal of Costco’s offerings to a wider demographic, including those who may not have the time or means to visit physical stores regularly.
Beyond the core delivery service, both Costco and Uber are implementing strategic cross-promotional initiatives to foster deeper engagement between their respective loyalty programs. Costco members will be eligible to receive a substantial discount on an annual Uber One membership—50% off for the first year, followed by a 20% discount in subsequent years. Uber One, Uber’s premium subscription service, offers a suite of benefits including waived delivery fees, savings on both rides and delivery orders, and exclusive member-only promotions. This incentive structure is designed to encourage consistent use of both services, creating a symbiotic relationship that benefits both consumers and the partner companies.
Furthermore, the collaboration extends to physical and digital retail touchpoints. Uber and Uber Eats gift cards will now be available for purchase at Costco locations and on Costco.com, often at a discounted rate. In a move to attract new members and further solidify the partnership, consumers will also have the option to purchase a Costco membership directly through the Uber Eats app, with an attractive incentive of 30% off their first order. This multifaceted approach aims to capture new customers and enhance the value proposition for existing members of both platforms.
Andrew Macdonald, President and Chief Operating Officer at Uber, expressed enthusiasm for the expanded partnership, stating, "We are thrilled to expand our partnership with Costco nationwide, giving Costco members more ways to shop and bringing the brand’s storied selection and value to more consumers." He further emphasized the scale of the opportunity, adding, "Costco is one of the largest and most trusted retailers in the country for good reason, and our nationwide partnership demonstrates the scale and opportunity Uber can bring to retailers looking to meet more of consumers’ everyday shopping needs." This sentiment underscores Uber’s strategic vision of leveraging its vast delivery network to become an indispensable partner for major retailers seeking to extend their reach and enhance their customer experience.
Costco’s Evolving Multi-Partner Delivery Strategy
Costco’s strategic emphasis on same-day delivery has become a cornerstone of its evolving digital commerce strategy. CEO Ron Vachris articulated this focus during a May earnings call, noting, "Same-day delivery powered by our third-party partners has become a highly effective way to deliver more convenience to our members." This sentiment is backed by impressive operational metrics. Vachris revealed that the average same-day delivery time across the U.S. currently stands at an efficient 45 minutes, accompanied by a strong customer satisfaction rating of 4.8 out of 5.
The accelerated growth of same-day delivery compared to the overall digital business is a key indicator of its success. Vachris elaborated, "This part of our business is growing at an even faster rate than our digital business overall. And is a strong driver of loyalty, as it is often our highest spending members who are using the service." This suggests that the convenience and accessibility of rapid delivery are particularly resonating with Costco’s most valuable customer segment, driving repeat purchases and strengthening member loyalty.
While the Uber Eats partnership represents a significant expansion, Instacart continues to play an integral role in Costco’s global fulfillment operations. Instacart’s advanced e-commerce platform, Storefront Pro, and its fulfillment solutions are instrumental in powering Costco’s same-day delivery websites in international markets such as France and Spain, where operations were launched in January. In these markets, Costco members can directly shop through Costco’s own websites, with Instacart managing the backend technology and fulfillment logistics. This approach allows Costco to maintain brand control while leveraging Instacart’s expertise in rapid delivery.
Internationally, Costco and Uber Eats already have a well-established relationship, with hundreds of Costco locations already available on Uber Eats across Canada, France, Japan, Spain, Taiwan, and Mexico. This existing international synergy likely provided valuable insights and operational experience that informed the decision to expand the partnership to a national scale within the United States. The combined efforts of Instacart and Uber Eats demonstrate Costco’s commitment to a diversified delivery strategy, enabling them to adapt to different market needs and leverage the strengths of multiple partners.
Broader Implications for Retail and E-commerce
The nationwide expansion of Costco’s Uber Eats partnership signifies a broader trend within the retail sector: the increasing importance of robust, flexible, and convenient delivery options. As consumer expectations continue to evolve, retailers are compelled to invest heavily in their last-mile logistics and explore strategic alliances to meet demand for speed and accessibility. Costco’s approach, leveraging multiple delivery partners while maintaining its own e-commerce infrastructure, provides a model for how large retailers can effectively balance in-house capabilities with third-party expertise.
This move also has significant implications for the competitive landscape of grocery and general merchandise delivery. By integrating with Uber Eats, Costco is directly competing with other grocery delivery services and large retailers that have already established strong presences on such platforms. The availability of Costco’s bulk items and unique product assortment through Uber Eats could attract a new segment of customers to both platforms, potentially shifting market share.
The cross-promotional benefits, particularly the discounted Uber One memberships and the ability to purchase Costco memberships via Uber Eats, are indicative of a growing trend toward ecosystem building. Companies are increasingly looking for ways to create sticky customer relationships by offering bundled services and incentives that encourage users to engage with multiple offerings within their network. This strategy not only drives incremental revenue but also enhances customer loyalty and reduces churn.
For Uber, this partnership represents a substantial win, further solidifying its position as a key player in the grocery and retail delivery space. By integrating a retailer of Costco’s scale and brand recognition, Uber can expand its customer base and revenue streams beyond traditional food delivery. The success of this nationwide rollout could pave the way for similar large-scale retail partnerships for Uber in the future.
The continued success of same-day delivery for Costco, particularly among its highest-spending members, suggests that convenience and speed are powerful drivers of customer retention and value. As e-commerce continues to mature, the ability to offer a seamless and rapid delivery experience will likely become an even more critical differentiator for retailers seeking to thrive in a competitive market. Costco’s strategic expansion with Uber Eats is a clear indication that they are well-positioned to capitalize on these evolving consumer demands.
The article is based on information available as of the fiscal Q2 2026 earnings call in March. Further updates on the performance and impact of this nationwide expansion are anticipated in subsequent financial reporting.
