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Costco is piloting curbside pickup with the help of Instacart at 3 New Mexico locations

Jan 21, 2021, 23:49 IST
Business Insider
Ting Shen/Xinhua via Getty
  • Costco is introducing curbside pickup at three warehouse locations in Albuquerque, New Mexico
  • The big-box retailer has historically stuck to in-store shopping, but a partnership with Instacart is changing that
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Costco has historically stuck with in-store shopping, despite curbside pickup offerings at its competitors BJ's and Sam's Club. Now, Costco members in New Mexico will be able to test out a pickup option.

As of this week, the retailer is offering curbside pickup "powered by Instacart" at three warehouse locations in and around Albuquerque, New Mexico.

An overview on Costco's website runs members through the process: Using the Costco app or website, customers can select same-day delivery and pickup and then choose a location to start browsing over 2,000 items online.

Read more: 'Every day is a new Black Friday for us': Instacart president on grappling with a surge in demand during the coronavirus pandemic

Members then park in designated spots during their one-hour pickup window to receive their order. The retailer charges a fee of $10 per order and enforces an order minimum of $100, but shoppers buy individual items at the same price as in-store purchases.

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The shopping and payment platform is separate from the main Costco website and requires agreement to Instacart's terms of service.

Costco, in a statement to USA Today, said that a full-scale rollout won't be happening anytime soon, clarifying that the service is being tested on "a limited basis in one market at this time."

In April of 2020, after the coronavirus pandemic forced lockdowns, curbside pickup increased by 208% at retail stores, CNBC reported. Instacart's valuation jumped to $13.8 billion in July, due in large part to the rise of contactless shopping during the pandemic.

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