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Costco Announces New Grocery Delivery Pilot With Shipt

Costco Announces New Grocery Delivery Pilot With Shipt

Thursday, March 23rd, 2017

Costco Wholesale is looking to join the race for one of the latest buy-side trends; grocery home delivery. The retailer has announced a new partnership with Shipt in order to bring fresh goods straight to the doors of Florida consumers.

Bill Smith, Founder and CEO, Shipt"We founded Shipt to simplify the grocery shopping experience, and are pleased to give our dedicated members access to unmatched savings as an extension of their Shipt memberships," said Bill Smith, Founder and CEO of Shipt. "As we continue to scale Shipt on a national level, we look forward to offering more options for delivery to our Florida members today, and to Shipt members across the country in the future."  

Costco will start with the Tampa region, according to a press release, and will expand these services to 50 markets and over 30 million households by the end of 2017–should the pilot prove its merit.

Founded in 2014, Shipt has previously worked with retailers such as Whole Foods, Harris Teeter, and Kroger. Shipt memberships are available for an annual fee of $99, with members gaining access to unlimited free deliveries. Shipt users will be able to shop a full selection of consumables offered, note any preferences, choose a one-hour delivery window, and pay for their order. Shipt shoppers hand pick their items and deliver them as soon as one hour after the order is placed. 

Shipt Promo Shot

Looking to tap in on the convenience-driven consumer, home delivery has been a preeminent strategy for retailers lately. With retailers like Walmart and Amazon at the forefront of making e-commerce acquisitions and grocery delivery/pickup partnerships, and companies like Instacart and Albertsons taking charge of their own delivery plans, it’s no surprise Costco has decided to take to the online shopping route.

Will this plan expand into even further markets for Costco? Deli Market News will report.