Dive Brief:
- Uber announced Wednesday an expanded partnership with Costco as part of a slate of updates.
- Uber and Costco are growing their partnership to have the club retailer available on Uber Eats in several unspecified locations across the U.S., Canada, Mexico and Japan, “with more to come,” Beryl Sanders, director of grocery and retail partnerships at Uber, said during the company’s Go-Get 2024 event Wednesday.
- The rideshare and e-commerce company also announced a new feature that allows people to add caregivers to their Uber app, allowing them to book rides and buy medical supplies, groceries and over-the-counter items.
Dive Insight:
The announcements Wednesday seem geared at ramping up Uber’s competitive advantage against Instacart and DoorDash, the country’s leading grocery delivery providers.
Uber and Costco first teamed up in 2021 to pilot grocery delivery in 25 locations across Texas. Costco has worked with Instacart for several years and expanded their partnership to include locations in Canada and prescription delivery nationwide. Costco members can receive a reduced annual Instacart+ membership for $79, and Costco members who are new to Instacart+ can receive two free months of the grocery technology company’s membership.
Costco members will save an additional amount on their Uber Eats orders and get 20% off an annual Uber One membership. Members can enter their membership number in the Uber Eats app on Costco’s storefront page or at checkout.
Another new Uber feature mirroring Instacart is Uber Caregiver. This service aims to make it easier for adult caregivers to help the people they are assisting. For example, caregivers will have access to a user’s benefits for eligible purchases. Uber also added a three-way chat in the app to help caregivers more easily communicate with the driver or courier.
Instacart rolled out a similar tool, called Care Carts, in 2022 that lets healthcare providers and caregivers order groceries on behalf of someone else. Instacart has noted that Care Carts allows it to tap into ways that enhance Medicaid benefits and make it easier and more convenient for clients to follow a prescribed nutrition plan
Other new features Uber announced Wednesday include an upcoming option to reserve seats on local shuttle service and the ability to schedule a shared ride in advance.
The company said it is boosting its Uber One membership program, which launched in 2021, by rolling out a half-price version for students. Uber One for Students costs $4.99 per month or $48 per year. In addition to members-only pricing and discounts like free delivery and up to 10% off orders, students will also get special deals and free items.
Despite the intense competition among third-party delivery companies, there is room for collaboration. Earlier this month, Instacart said it would offer restaurant deliveries through Uber Eats and its couriers with an in-app “restaurant” tab.