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- Uber is offering new perks for Costco lovers as it looks to expand into the suburbs.
- Members and non-members can now shop Costco on Uber Eats for delivery of groceries and more.
- Costco members will get better pricing, plus a 20% discount on an Uber One membership.
As Uber looks to expand its reach beyond cities, the company is forging an alliance with the veritable king of suburbia: Costco.
"The Uber name is kind of an urban brand and we believe our most significant growth opportunity in the US is in the suburbs," CEO Dara Khosrowshahi told CNBC earlier this month.
The ride-hailing and delivery service on Wednesday announced a new partnership with the wholesale club that will bring Costco groceries and merchandise to customers via Uber Eats.
Costco members and non-members alike will be able to purchase products, but the pricing for members will be be roughly 15% to 20% lower. No hotdogs or pizza, unfortunately, as food court items are not listed in the app.
Costco currently offers same-day delivery through Instacart, with members-only pricing through its website. Non-members can shop through Instacart's site for a higher price, while the lowest pricing is almost always in the warehouse.
Uber also recently partnered with Instacart in a bid to take on DoorDash, especially among higher-income suburban shoppers.
"The over 10 million Instacart customers who tend to live in the suburbs tend to be highly affluent, shop with big basket sizes," Khosrowshahi told CNBC.
Costco members will also get a 20% discount on an Uber One membership, which offers free deliveries, discounts on certain purchases, and member pricing on rides.