There are now three apps that will deliver from Costco to your door.
When it comes to price, though, there’s a difference.
DoorDash and Uber Eats expanded their partnerships with Costco last week. DoorDash said it now delivers from Costco stores around the US, while Uber Eats now offers delivery from the chain in 47 states, up from its previous 17.
These complement Costco’s existing partnership with Instacart, CEO Ron Vachris said on the company’s latest earnings call on Thursday. Instacart has delivered from Costco stores since 2017.
Costco customers ordering via DoorDash and Uber Eats tend to be “significantly younger than our overall member base,” Vachris said. Delivery customers use the option when they need a few items while still regularly visiting a Costco store, he added.
But are each of the three delivery services comparably priced? And how much of a premium are customers paying over going to the store?
To find out, I checked the cost of 15 items at a Costco store near me in Washington, DC. Then, I compared the total to the cost of ordering those same items through Instacart, Uber Eats, and DoorDash. Here’s what I found.
The delivery apps carried a consistent markup
The 15 items I chose span the grocery categories at Costco, from Kirkland Signature Paper Towels to prime ribeye steaks. I also threw in a few items long popular with Costco shoppers, such as a rotisserie chicken and butter croissants.
To make the comparison with the apps fair, I made sure to order from the same store that I visited — and on the same day that I visited.
I also added my Costco membership to each of the apps. Uber Eats and DoorDash required this, while Instacart lets users order from Costco without a membership, though they might pay more. I did not use any of the paid memberships that the apps offer, such as Uber One, though shoppers who use those might save more.
Here’s how much the items alone cost without tax, fees, a tip, or discounts:
Costco in-store: $300.83
Uber Eats: $336.75
DoorDash: $337.64
Instacart: $380.65
Every item on my list cost more through the apps than it did at the store. And while the prices on Uber Eats and DoorDash were usually close to each other, those on Instacart tended to be the highest.
Each app applied a consistent markup. Uber Eats charged about 12% more than store prices, while DoorDash was closer to 11%. On Instacart, prices were 24% higher.
An Instacart spokesperson said that retailers like Costco set item prices on Instacart. A DoorDash spokesperson said that the pricing structure varies between retailers on the app.
Initially, my list included two alcohol items: A 1.75-liter bottle of Kirkland Signature French Vodka and a 750-milliliter bottle of Veuve Clicquot Brut Champagne, both of which I saw were in stock at the store that I visited. I cut these two items because I couldn’t find them on Uber Eats or DoorDash.
An Uber spokesperson said that the company plans to launch alcohol delivery with Costco, but did not provide a timeline. A DoorDash spokesperson also declined to confirm when the service would start delivering booze.
Fees and tips widened the gap versus store prices
The cost of delivery increased when I reached the checkout page. Here’s how much my 15 products were with everything, including sales tax as well as fees, discounts, and a 5% tip that the apps applied:
Costco in-store: $318.88
Uber Eats: $373.20
DoorDash: $328.27
Instacart: $419.36
DoorDash was the cheapest delivery option, thanks largely to a $50 discount that the service is offering on Costco orders until November. Otherwise, the cost would be $378.27 all in.
Paying about $10 — about 3% — more than store prices to have everything delivered seems like a reasonable deal. The long-term question, though, is whether paying closer to 20% more will be worth it when the discount presumably goes away.
Instacart remained the most expensive option, with the total cost about 32% higher than shopping in-store.
Whether the higher costs are worth it depends on your needs.
Instacart customers have told me over the years that they appreciate not having to lug huge packs of paper goods up stairs. Many shoppers, especially in big cities, don’t have cars, which makes it less practical to haul stuff home from Costco’s stores, which are often in suburban neighborhoods.
For others, the value of having Costco items delivered might be what CEO Vachris mentioned on this week’s earnings call: Getting those few things that you forgot to buy or ran out of since your last Costco run.
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