From Business Insider · Alex Bitter · · 1m 20s
DoorDash and Uber are coming for Instacart
DoorDash and Uber Eats are rapidly expanding grocery delivery partnerships, threatening Instacart's dominance at Costco.
In brief
DoorDash and Uber Eats are rapidly expanding grocery delivery partnerships, threatening Instacart's dominance at Costco. DoorDash and Uber Eats are using major retailer partnerships to break into grocery delivery, a market they see as worth a trillion dollars. Originally reported by Business Insider.
DoorDash and Uber expand at Costco
DoorDash launched nationwide Costco delivery on Thursday. Uber Eats expanded to 47 states the day before, up from 17. Both moves threaten Instacart's partnership with Costco since 2017.
Grocery is a trillion-dollar prize
Uber CEO Dara Khosrowshahi called grocery and retail sales "another trillion-dollar opportunity." DoorDash CEO Tony Xu says partnerships with grocers give it an edge over Amazon's expanding delivery network.
“"another trillion-dollar opportunity"”
Amazon's building its own network
Amazon is constructing warehouses and hiring delivery workers to bring groceries in 30 minutes or less. DoorDash, Instacart, and Uber Eats compete differently, using gig workers to fill orders from existing retailer shelves.
Why Costco matters so much
Costco's in-store visits grew 18% over seven years while Walmart and Target stayed flat. DoorDash called Costco "among the most-searched retailers not yet available" on its platform before the deal.
Instacart fights back with perks
Instacart started offering credits on orders for Costco executive members, who pay higher membership fees. CFO Emily Reuter said the benefit deepens relationships with high-value customers seeking additional value.
“"continuing to deepen the relationship with Costco"”
What it means
DoorDash and Uber Eats are using major retailer partnerships to break into grocery delivery, a market they see as worth a trillion dollars.
