Costco delivery is currently only available in Tampa, Florida; however, according to a press release, Shipt plans to extend the service to 50 other markets reaching 30 million households across the U.S. by the end of this year.
For a $99 annual fee, Shipt shoppers will make entirely customized Costco runs for you, personally picking up the products and delivering them to your home or place of business.
The move is an effort by Costco to attract more customers through a home-delivery service. The retailer has previously tested the use of Instacart, another online delivery service similar to Shipt that uses personal shoppers.
By 2025, as much as 20% of grocery shopping — or $100 billion in annual sales — could be online, according to the Food Marketing Institute, which calls the Costco/Shipt alliance “seismic.” More than 70% of consumers said they’ll likely shop for groceries online within the next decade, if not sooner.
“Everyone’s looking to save time and get more out of less time,” said Shipt CEO Bill Smith. “With Shipt in particular, people love the service and the quality of the experience.”
Shipt already partners with other grocery providers, including Whole Foods and H-E-B, Harris Teeter and Meijer, which will also soon begin delivering products across the Midwest before expanding nationwide.
Source: CNBC