Costco Canada partners with Instacart for same-day delivery

Stewart Samuel
Program Director - Canada
@RetailAnalysis

Date : 30 July 2020

Building on an earlier pilot, Costco Canada and Instacart are partnering for a national same-day grocery delivery programme.

On-demand delivery

Same-day delivery will be offered from 76 of Costco Canada’s 101 outlets. The national roll-out follows on from a two-month pilot in Ontario. Although Costco Canada has offered a non-food, home delivery ecommerce proposition for several years, this will the first time that consumers will be able to order a range of groceries and household essentials. Partnering with Instacart, the leading on-demand, crowd-sourced delivery company in North America, will enable customers to receive their orders in as fast as two hours.

Source: Costco Canada

Available to members and non-members

To support this service, the companies have developed a members-only ecommerce site, although non-members will also be able to order directly through Instacart. Prices for members will be lower, although they may be higher than the in-warehouse price. This builds on a two-day delivery programme the retailer launched in 2018.

Intense focus on channel development

Costco has operated a successful partnership with Instacart in the US since 2017, recently expanding the programme to include prescription delivery. Although it remains a small part of Costco’s overall business, it is fast-growing and has been accelerated by the COVID-19 pandemic. Both Loblaw and Walmart partner with Instacart in Canada, while Metro has recently started working with Cornershop to offer on-demand delivery. Grocery ecommerce is an area of intense focus in the market, with Sobeys and Walmart recently announcing major investment plans, capitalising on current channel growth opportunities. 

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