DoorDash says Costco members can order same-day delivery from every US Costco warehouse, after Uber expanded its delivery partnership from 17 to 47 US states
First reported by Bloomberg ·
Costco products are now available for same-day delivery through DoorDash in the US.
DoorDash has launched same-day delivery for Costco members across all U.S. warehouses, expanding their existing global partnership. Costco members can now order a wide range of items, from groceries to electronics, through the DoorDash app. To use the service, members link their active Costco membership to their DoorDash account. Non-members can purchase a Costco membership and then link it to DoorDash. Costco was a highly searched retailer not yet available on the platform. This move signifies DoorDash's continued expansion into non-restaurant verticals like grocery and retail, which are reportedly growing faster than its core restaurant business and are on track to achieve gross profit by year-end. This follows Costco's recent expansion of its Uber Eats delivery partnership to 47 U.S. states.
DoorDash's integration with Costco, a major wholesale retailer, underscores the platform's strategic pivot towards diversifying beyond food delivery. By capturing a significant share of grocery and retail orders, DoorDash aims to increase average order values and customer lifetime value, leveraging its existing logistics network. The company's success in these new verticals could signal a broader trend of delivery platforms evolving into comprehensive marketplaces, competing not just on speed but on breadth of offering and customer engagement.
The competition between DoorDash and Uber in securing major retail partnerships, such as with Costco, highlights the intensifying battle for dominance in the evolving e-commerce delivery landscape. As both companies push into grocery and other retail sectors, consumers benefit from expanded choice and convenience, but retailers face increased pressure to optimize their online presence and fulfillment strategies. The strategic importance of these partnerships suggests that access to diverse product categories and a large, engaged customer base will be key differentiators going forward.
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