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Uber partners with Costco for grocery delivery in Dallas, other Texas cities; no membership required

Uber is also waiving delivery fees for members of its Uber Pass and Uber Eats Pass programs.

Uber has partnered with wholesaler Costco, which will allow users to order groceries from their local Costco warehouses in Dallas, Austin and Houston and get them in a matter of hours beginning Wednesday.

Ordering is available on both the Uber and Uber Eats apps and will require a $35 minimum for all orders. Users will initially be able to order from 25 store locations across Texas, and the company plans to make seven additional Costco locations available to users in the coming weeks.

It’s waiving delivery fees for members of its Uber Pass and Uber Eats Pass programs, and you don’t have to be a Costco member to order groceries through Uber, according to the company.

“Our mission statement at Costco is to take care of our members. By finding solutions to deliver merchandise quickly and efficiently, we continue to offer our members value, convenience and member service,” Costco executive vice president Ron Vachris said in a statement.

Uber declined to share the financial details of its agreement with Costco but said the agreement was in line with other similar deals where Uber charges the partner a fee for using its platform.

Dallas — and Texas in general — have been used as test markets for Uber’s recent forays into expanded delivery services.

Uber began piloting grocery delivery in Dallas in July 2020 as the pandemic altered the way consumers bought their groceries. It has launched grocery delivery in 400 U.S. cities, including Dallas, New York and Miami, and plans to expand grocery delivery into more cities over the remainder of the year. Uber also piloted its prescription delivery service in Dallas.

The initiative with Costco is Uber’s first partnership with a food wholesaler in the U.S.

As Uber expands its services in Texas test markets, it’s also shrinking its corporate footprint in the state. Before the pandemic, Dallas was set to land as many as 3,000 Uber jobs, which would have made it the company’s largest hub outside San Francisco. Uber recently pulled out of all local and state incentive deals it struck in Texas, citing the pandemic as the reason it would only be able to hire 500 or so workers in Dallas.

Total online grocery sales in May 2021 slipped 16% year over year but were still 3.5 times higher than pre-pandemic, according to recent survey data from consumer research firm Brick Meets Click.

With the Uber partnership, Costco is playing catch-up with its competitors. Sam’s Club has rolled out more consumer-facing tech in recent years even though Costco is much larger than Sam’s by revenue.

Uber struck a partnership with Costco rival Walmart to test grocery delivery in 2017, but it no longer has a relationship with the company, it said.

Dom DiFurio. Dom is a staff writer covering breaking business news. He writes about the companies and transactions that shape life in North Texas. Dom considers himself among the many transplants that moved to Texas from the crowded coasts who found more than enough reasons to call it home.

ddifurio@dallasnews.com /domdifurio @DomDiFurio
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