Costco to Launch Delivery Service through Partnership with Shipt

Shipt, a membership-based online grocery delivery service, announced that Costco Wholesale Corp. (NASDAQ: COST) will start a partnership with Shipt to launch a delivery service in the Tampa metro area. Shipt will began to pick up orders for Costco’s customers, and said that it planned to expand to 50 markets and over 30 households by the end of 2017.

According to Shipt, the services will deliver groceries, but not include apparel, electronics or furniture. The perishable items will also be included, and the Shipt said that it offered a unique logistical challenge.

“Everyone’s looking to save time and get more out of less time. With Shipt in particular, people love the service and the quality of the experience,” said Bill Smith, the CEO of Shipt. “If you want to go to Costco, it’s a process. Consumers will order and purchase more frequently if they can have the items delivered.” He said that moms with small children are a large part of the company’s customer base. Costco did not comment on the partnership.

Before forming a partnership with Costco, Shipt has already working with Whole Foods Market, Harris Teeter and H-E-B, the regional grocery chains. Meijer, a supermarket chain, announced earlier this month to offer Shipt delivery across 6 Midwestern states.

The partnership of Costco and Shipt is not the only one in the industry. Kroger has cooperated with Uber. Since last June, Wal-Mart has been having test runs with Uber and Lyft. Instacart, Amazon Fresh, FreshDirect and Google Express are also the examples of delivery services.

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