Uber Delivery Buildup Continues Expansion with Costco and Mercari Partnerships

Uber Technologies is continuing to scale its massive logistics buildup with two new retail partnerships. The ridesharing service will now provide same-day grocery delivery for Costco in Texas, and will help Mercari take its “no-meetup garage sale” marketplace nationwide.

The Costco pilot will begin at 25 warehouse stores in Dallas, Austin, and Houston, with seven more Texas locations to be added over the coming weeks. Any Costco shopper who reaches a minimum order amount of $35 can use the service, and Uber Pass and Eats Pass holders can waive the delivery fee.

“Our mission statement at Costco is to take care of our members,” said Ron Vachris, EVP, Merchandising at Costco in a statement. “By finding solutions to deliver merchandise quickly and efficiently, we continue to offer our members value, convenience and member service.”

The Costco news follows closely on the heels of Uber’s national partnership with Albertsons. Uber is now offering grocery delivery in more than 400 cities, including major metro areas such as Miami, Dallas, New York City, San Francisco, Washington, D.C. and Phoenix. The ridesharing company plans to further expand its delivery capabilities over the remainder of 2021.

Mercari Helps Uber Break into Resale Logistics

Mercari previously offered the Mercari Now platform in select markets including San Francisco, New York and Houston, to help people sell their old and unwanted items on the local level without the need to meet in person — an important consideration over the last year in particular. The addition of Uber’s logistics capabilities will help Mercari take this concept nationwide as Mercari Local.

The service will utilize Uber’s driver network to enable on-demand delivery of almost anything, without requiring packaging. Mercari Local is being positioned as a good way for users to sell bulky or awkward items such as small household furniture, kitchenware, fitness equipment and baby gear without the added expense of shipping costs.

The partnership expands the Uber Direct service into consumer-to-consumer commerce. The platform, which launched in 2020, offers retailers on-demand delivery options and lets companies fill their own ecommerce orders through Uber couriers.

Uber picked a good time to enter the resale logistics market: during the last 12 months, 75% of shoppers purchased at least one second-hand item, and over half spent $100 or more on second-hand purchases, according to a survey by Mercari. Another 10% earned at least $1,000 selling second-hand items, and 78% of respondents said they were likely to sell at least one second-hand item in the next 12 months. The top reasons for using resale services were finding a good deal, discovering unique finds and love for the community.

“When you think about the traditional American garage sale, it’s as much about connecting with your neighbors as it is about decluttering and cleaning out your space,” said John Lagerling, CEO of Mercari U.S. in a statement. “With Mercari Local, we’ve reimagined the way people can buy, sell and connect with their local communities, allowing them to do so all without leaving their house.”