Uber drivers in Texas will now deliver your Costco groceries 'within minutes' if you spend $35

Uber drivers in Texas will now deliver your Costco groceries 'within minutes' if you spend $35
  • Costco is launching a pilot delivery service in Texas with Uber.

  • Customers can get groceries delivered "within minutes" through Uber if they spend $35.

  • Costco already offers same-day delivery services through its partnership with Instacart.

  • See more stories on Insider's business page.

Uber drivers in certain parts of Texas will now deliver your Costco groceries.

Uber announced Tuesday it was partnering with Costco on same-day delivery. It promises to get groceries to customers within minutes or hours.

To use the trial service, customers need to order through the Uber or Uber Eats app, and make up a basket of Costco products worth more than $35.

Uber has expanded its grocery delivery across the US by partnering with different retailers. Most recently, it teamed up with Albertsons, which owns Safeway and Acme Markets among other chains, for delivery in 400 cities.

Read more: Uber is pushing into the 'cutthroat' grocery business. A partnership with Albertsons is paving the way for the company's biggest grocery expansion since last July.

Costco already offers same-day delivery in and around most cities where it operates, through a partnership with Instacart.

Spokespeople for both Costco and Instacart did not immediately respond to Insider's request for comment on how, or if, the Uber deal would impact their partnership.

At the height of the pandemic, Instacart's business boomed as shoppers avoided crowded stores. About 22% of all orders placed on its app in 2020 were filled at Costco stores, according to analytics firm 1010data, cited by Insider's Alexander Bitter.

Costco, which has admitted that it has been slower than its competitors to react to e-commerce, has been able to better compete in this market because of this Instacart partnership.

In a recent earnings call, CFO Richard Galanti said that it also gained new shoppers through Instacart.

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